Corsair Gaming (NYSE: CRSR) released its first-quarter FY22 earnings after the market closed on Thursday, May 5, 2022. Here is an overview of the latest disclosure.
- Revenue: $380.7 million reported vs. $380 million
- EPS: $0.09 adjusted vs. $0.10 expected
The CRSR stock plunged 7.66% and traded at $14.35 (down by 1.19 points) in the extended trading session on Thursday.
Financial Highlights
- Net revenue was $380.7 million, in line with the Company’s preliminary revenue provided on April 21, 2022. This represents an increase of 23.4% compared to the pre-pandemic first quarter of 2020, and a decrease of 28.1% compared to the first quarter of 2021, which included stimulus checks and pent-up demand.
- Gamer and creator peripherals segment revenue was $134.1 million, an increase of 76.8% compared to the pre-pandemic first quarter of 2020, and a decrease of 23.7% compared to the first quarter of 2021.
- GAAP operating income declined 103.7% to a loss of $2.5 million compared to $67.3 million in the first quarter of 2021. Adjusted operating income declined 83.4% to $13.3 million compared to $80.4 million in the first quarter of 2021.
- Adjusted EBITDA was $15.4 million, compared to $80.4 million in the first quarter of 2021.
- GAAP net loss per diluted share was $0.05 compared to $0.47 GAAP net income per diluted share in the first quarter of 2021. Adjusted net income per diluted share was $0.09 compared to $0.58 in the first quarter of 2021.
CEO’s Statement
“While we faced headwinds in Q1, with inflation, the continued Russia and Ukraine conflict, and high freight costs, we continue to see positive underlying growth trends in the gaming hardware sector. During Q1, GPU cards, which are the most expensive item in a gaming PC, were still at a high premium, roughly 150% of MSRP, and even with this premium we saw gaming PC build activity slightly higher than pre-pandemic and pre-GPU shortage levels. Our components segment grew by 6% in Q1 2022 compared with Q1 2020, the last Q1 before the pandemic and shelter at home.”
Andy Paul, Chief Executive Officer of Corsair
Analysts Estimate
The Zacks Consensus Estimate for the earnings per share (EPS) was pinned at $0.10. This indicated a massive decline of 82.76% year-over-year. However, it also suggested a huge decrease of 71.43% than that of the last quarter.
The Earnings Expected Surprise Prediction was a huge 0.00%, which suggested that the consensus did expect Corsair Gaming to meet for the first quarter. Moreover, the estimated revenue was pegged at $380 million. This suggested a substantial decline of 28.22% year-over-year.
Earnings History
Corsair Gaming’s full year FY21 highlights include:
- Net revenue was $1,904.1 million, an increase of 11.8% year-over-year. Gamer and creator peripherals segment net revenue was $647.2 million, an increase of 20.0% year-over-year.
- Gaming components and systems segment net revenue was $1,256.9million, an increase of 8.1% year-over-year.
- Net income was $101.0 million, or $1.01 per diluted share, compared to net income of $103.2 million in the same period last year, or $1.14 per diluted share.
- Adjusted net income was $144.9 million, or $1.45 per diluted share, compared to adjusted net.
- Income of $145.0million in the same period last year, or $1.60 per diluted share.
- Adjusted EBITDA was $199.2million, compared to adjusted EBITDA of $213.0 million in the same period last year.
Earnings Forecast
Zacks analysts estimate the EPS to be at $0.25 in the second quarter of FY22, indicating a huge decline of 30.56% year-over-year. Moreover, the revenue is estimated at $435.91 million, indicating a growth of 7.82% from this year.
