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Turtle Beach Strengthens Ties With NRG Esports, Stock Rises

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Turtle Beach Corporation (HEAR - Free Report) yesterday announced that it stretched its partnership with NRG Esports. NRG is a global leader in gaming that fields some of the most popular rosters in tournaments like APEX, Fortnite, Rocket League and Super Smash Brothers. Turtle Beach’s shares rose 15.4% in the last trading session.

Turtle Beach is considered the world’s leading console gaming headset maker. This San Diego, CA-based company recently announced selling more gaming headsets annually than its peers in 10 consecutive years. Since 2010, it sold above 34 million console gaming headsets in North America alone. In June 2019, Turtle Beach completed the acquisition of ROCCAT, a leading German PC peripherals company, for $15.6 million in cash plus up to $3.3 million in earnout payments.

On Jan 23, Turtle Beach announced its initial partnership with NRG’s Chicago Huntsmen CDL Franchise. Now, this expanded agreement includes more of NRG’s list of teams and players with Turtle Beach being the official gaming audio partner per the deal. ROCCAT is NRG’s official gaming accessories partner for keyboards, mice and other PC peripherals.

Players will be using a variety of high-quality headsets, mice, keyboards including Turtle Beach’s Elite Pro 2, Elite Atlas and wireless Elite Atlas Aero headsets. This also covers ROCCAT’s Kone Pure Ultra lightweight mouse, Kain series gaming mice and the latest Vulcan line-up of gaming keyboards. Furthermore, Turtle Beach will be coordinating with NRG’s players to create a plethora of engaging and fun content for gaming buffs.

ROCCAT’s expertise is helping accelerate Turtle Beach’s growth into the nearly $1.6-billion PC gaming headset market and the $1.3-billion PC gaming keyboard and mice market. Turtle Beach intends to flourish from being the leader in console gaming headsets to building a top gaming accessory brand for all platforms. The company is well-positioned to benefit from a solid product performance coupled with market share expansion, driven by innovation, quality products, strong brand and retail partnerships.

Turtle Beach has a trailing four-quarter positive earnings surprise of 112.5%, on average. The stock has lost 47.5% compared with 28.3% decline of the industry in the past year.



Turtle Beach currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Ooma, Inc. (OOMA - Free Report) , SeaChange International, Inc. (SEAC - Free Report) and Viavi Solutions Inc. (VIAV - Free Report) . While Ooma sports a Zacks Rank #1 (Strong Buy), SeaChange and Viavi carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ooma has a trailing four-quarter positive earnings surprise of 124%, on average.

SeaChange has a long-term earnings growth expectation of 10%.

Viavi has a trailing four-quarter positive earnings surprise of 11.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.

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