Video game hardware and peripherals maker Corsair Gaming (CRSR) on Tuesday crushed Wall Street’s targets for the first quarter. It also raised its guidance for the full year. But CRSR stock fell in morning action amid a down market.
The Fremont, Calif.-based company earned an adjusted 58 cents a share on sales of $529.4 million in the March quarter. Analysts expected Corsair earnings of 33 cents a share on sales of $449.7 million. On a year-over-year basis, Corsair earnings rocketed 346% while sales jumped 72%.
“We are thrilled with our first-quarter financial performance and strategic progress,” Chief Executive Andy Paul said in a news release.
He added, “End demand remained strong for our products and our new products such as the K65 mini RGB keyboard and Elgato’s new accessories debuted well. We introduced 29 new products in the first quarter and we expect this blistering pace of new product introduction to continue throughout the year with several brand new products still to come.”
CRSR Stock Rises On Earnings News
For 2021, Corsair upped its revenue outlook to a range of $1.9 billion to $2.1 billion. Its previous range was $1.8 billion to $1.95 billion. It also increased its adjusted earnings outlook to a range of $245 million to $265 million, vs. its prior guidance of $215 million to $230 million.
Wall Street had predicted Corsair earnings of $1.55 a share on sales of $1.9 billion in 2021.
In morning trades on the stock market today, CRSR dropped 2.2% near 32.70.
CRSR stock went public on Sept. 23 with shares priced at $17. On Oct. 20, CRSR stock broke out of an IPO base at a buy point of 22.60, according to IBD MarketSmith charts. It notched an all-time high of 51.37 on Nov. 14.
Corsair makes high-end gaming peripherals such as headsets, keyboards, mice and controllers. It also sells PC components such as memory, cooling systems and power supplies as well as full gaming PC systems. Plus, it sells livestreaming gear for content creators.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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