Corsair Gaming $CRSR Reports EPS and Revenue Beats

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CRSR stock rose 5% on February 8, 2022, as the company reported EPS and revenue beats.

Corsair Gaming Reports Fourth Quarter and Full Year 2021 Financial Results

Corsair Gaming, Inc. (NASDAQ:CRSR), a leading global provider and innovator of high-performance gear for gamers and content creators, today announced financial results for the fourth quarter and full-year ended December 31, 2021. Corsair Gaming reported Q4 EPS of 35c versus the consensus estimate of 25c. The company reported Q4 revenue of $510.6M versus the consensus estimate of $495.3M.

Full Year 2021 Highlights

  1. 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 $1,256.9 million, an increase of 8.1% year-over-year.
  2. 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.
  3. Adjusted net income was $144.9 million, or $1.45 per diluted share, compared to adjusted net income of $145.0 million in the same period last year, or $1.60 per diluted share.
  4. Adjusted EBITDA was $199.2 million, compared to adjusted EBITDA of $213.0 million in the same period last year.

Fourth Quarter 2021 Highlights

  1. Net revenue was $510.6 million, well above pre-pandemic fourth quarter levels and within 8.2% of Q4’20’s record $556.3 million in which net revenues increased by 70.4%.
  2. Net income was $24.7 million, or $0.25 per diluted share, compared to net income of $43.0 million, or $0.43 per diluted share, in the same period last year.
  3. Adjusted net income was $34.7 million, or $0.35 per diluted share, compared to adjusted net income of $53.0 million, or $0.53 per diluted share, in the same period last year.
  4. Adjusted EBITDA was $39.5 million, compared to adjusted EBITDA of $72.5 million in the same period last year.

Definitions of the non-GAAP financial measures used in this press release and reconciliations of such measures to their nearest GAAP equivalents are included below under the heading “Use and Reconciliation of Non-GAAP Financial Measures.”

“After the extraordinary growth in 2020 caused by gamers spending more time at home gaming and the large growth in the creator economy, we are pleased to see that after lockdowns and shelter at home were lifted, our Q421 net revenues were within about 8% of Q420. Despite the ongoing logistical and supply chain challenges impacting markets, including the lack of availability of reasonably priced GPUs in the retail channel, we experienced healthy growth over 2020 in both our operating segments. Our gamer and creator peripherals segment grew 20% year-over-year, demonstrating the underlying secular growth trends in the overall gaming, esports, content creator and streaming hardware and services market. As we discussed during our recent Investor Day and with our record new product introductions of 141, including five new categories, we remain focused on expanding our presence in the market and are well positioned to continue to gain market share,” stated Andy Paul, Chief Executive Officer of Corsair.

“We are pleased with our strong financial performance to conclude 2021, with fourth quarter revenue and profitability metrics achieving the high end of our expectations. We remain focused on growth following the transformation of our debt levels and cost management efficiencies over the past few years. As we begin 2022, we expect to continue to experience elevated freight costs and ongoing supply chain issues, but we believe these circumstances will ease as the year progresses. As these macroeconomic conditions improve, we expect to increase our cash position, which should allow us to execute on M&A opportunities that fulfill our investment criteria or further reduce debt,” said Michael G. Potter, Chief Financial Officer of Corsair.

Corsair Gaming assumed with a Buy at DA Davidson

On January 21, 2022, DA Davidson analyst Franco Granda assumed coverage of Corsair Gaming with a Buy rating and $36 price target. The company’s preliminary results for 2021 exceeded expectations, while its 2026 financial goals that call for revenues of $3.5B imply a 12.5% CAGR, gross margins over 30%, and adjusted EBITDA at over 13%, up from the projected $1.9B, 27%, 10% in 2021 respectively, the analyst tells investors in a research note.

Corsair Gaming acquires majority ownership in Taiwan-based iDisplay

On January 5, 2022, Corsair Gaming acquired a 51% stake in iDisplay Technology, a provider of electronic development and design specializing in display technology. Taiwan-based iDisplay, founded in 1998, is a developer of consumer electronics, smart home controls, and streaming consoles. Corsair, through its Elgato subsidiary, partnered with iDisplay in 2015 to develop the Stream Deck studio control platform.

📺 Corsair Stock Analysis | Gaming Stocks to Buy Now? | CRSR Stock

Corsair Stock Analysis | Gaming Stocks to Buy Now? | CRSR Stock

📉 CRSR Stock Technical Analysis

Crsr Stock

The short-term trend is neutral, while the long-term trend is still negative. CRSR is part of the Technology Hardware, Storage & Peripherals industry. There are 36 other stocks in this industry, of which 64% are performing better than CRSR. CRSR is currently trading near the lower end of its 52-week range, which is not a good sign. The S&P500 Index is trading in the upper part of its 52-week range, so CRSR is lagging the market.

There is a support zone ranging from 18.44 to 18.47. This zone is formed by a combination of multiple trend lines in multiple time frames.

There is resistance at 20.45 from a trend line in the weekly time frame. There is a resistance zone ranging from 21.31 to 21.37. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also resistance at 21.76 from a trend line in the weekly time frame. Finally, there is a resistance zone ranging from 22.11 to 22.38. This zone is formed by a combination of multiple trend lines in multiple time frames.

Although the technical rating is bad, CRSR does present a nice setup opportunity. CRSR stock has a Setup Rating of 7 out of 10. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 18.47, a Stop Loss order could be placed below this zone.

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