Corsair Gaming is known for its gaming components and equipment, including streaming gadgets, mouses, keyboards, and headsets. The company was founded in the early 90s, selling memory but then quickly branched out into other PC hardware like power supplies, storage products, PC cases, and cooling systems. Now, it also builds high-end PCs.
The video gaming hardware and peripherals maker crushed Wall Street’s expectations, and management raised full-year guidance. The company reported better-than-expected first-quarter EPS and sales results, with $0.58 EPS beating the $0.33 estimate, while sales of $529.41 million beat the $449.7 million estimate.
Corsair finished the first quarter of 2021 with a 72% year-over-year increase in revenue to $529.4 million. Adjusted net income shot up from $0.13 per share a year ago to $0.58 per share. Analysts were expecting just $0.33 per share in earnings on revenue of $449.7 million. These impressive results were driven by robust growth across both its business segments – gaming components and systems and gamer and creator peripherals.
Encouraged by the tailwinds, Corsair increased its full-year revenue forecast to $2.0 billion at the midpoint of the range, a jump of nearly 17% over 2020. It wouldn’t be surprising to see the company further increase its guidance as the year progresses thanks to the growing demand for gaming components and systems and the boom in sales of peripherals and creator accessories.
Investors who have been worrying about the sustainability of Corsair Gaming’s momentum should be reassured by the opportunities across its various markets and buy this gaming stock. And the valuation should make this decision even easier. Corsair Gaming should be on your watch list, if not in your portfolio.