Turtle Beach Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

A week ago, Turtle Beach Corporation (NASDAQ:HEAR) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 7.9% to hit US$94m. Turtle Beach reported statutory earnings per share (EPS) US$0.17, which was a notable 17% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Turtle Beach

Taking into account the latest results, the most recent consensus for Turtle Beach from six analysts is for revenues of US$428.5m in 2025. If met, it would imply a huge 31% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 584% to US$1.57. Before this earnings report, the analysts had been forecasting revenues of US$430.0m and earnings per share (EPS) of US$1.51 in 2025. So the consensus seems to have become somewhat more optimistic on Turtle Beach's earnings potential following these results.

There's been no major changes to the consensus price target of US$22.83, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Turtle Beach at US$26.00 per share, while the most bearish prices it at US$20.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Turtle Beach's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 24% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.7% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.9% per year. So it looks like Turtle Beach is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Turtle Beach following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Turtle Beach. Long-term earnings power is much more important than next year's profits. We have forecasts for Turtle Beach going out to 2026, and you can see them free on our platform here.

Even so, be aware that Turtle Beach is showing 3 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.