Turtle Beach (HEAR) shares rallied 8.3% in the last trading session to close at $21.21. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 8.9% loss over the past four weeks.
The rally was driven by increased investor optimism after Turtle Beach announced that it delivered 10% EBITDA margin in a challenging year and remains on track to deliver almost $100 million in non-console-headset revenues in 2022. The company specified that solid performance has enabled it to deliver five-year total shareholder returns of more than 350%.
Moreover, Turtle Beach responded to Donerail Group’s attempt to take control of its board without any value proposition to shareholders. The company released a letter previously sent to Donerail stating its attempt to reach a constructive resolution to avoid a costly proxy contest.
This audio technology company is expected to post quarterly loss of $0.51 per share in its upcoming report, which represents a year-over-year change of -198.1%. Revenues are expected to be $42.97 million, down 53.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Turtle Beach, the consensus EPS estimate for the quarter has been revised 334.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on HEAR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Turtle Beach is part of the Zacks Communication – Components industry. KVH Industries (KVHI), another stock in the same industry, closed the last trading session 2.2% higher at $9.14. KVHI has returned 5.2% in the past month.
KVH’s consensus EPS estimate for the upcoming report has changed -25% over the past month to -$0.10. Compared to the company’s year-ago EPS, this represents a change of -100%. KVH currently boasts a Zacks Rank of #2 (Buy).
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