Corsair Gaming stock sinks aftermarket on weak prelim Q1 results

Apr. 21, 2022 5:47 PM ETCorsair Gaming, Inc. (CRSR)By: Jessica Kuruthukulangara, SA News Editor24 Comments

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  • Corsair Gaming (NASDAQ:CRSR) stock sank 13.8% postmarket after the firm's prelim. Q1 revenue widely missed Street view due to short-term slowdown in consumer spending in Europe.
  • Prelim. Q1 unaudited revenue was ~$380M, down ~28% Y/Y and well below consensus estimate of $449.73M.
  • Prelim. Q1 unaudited adj. EBITDA is expected to be $14M-15M vs. adj. EBITDA of $80.4M in Q1 2021.
  • "We were not expecting to show growth over Q1 2021 since that quarter contained stimulus checks and pent-up demand due to product shortages," said CEO Andy Paul.
  • "... inflation is higher than expected and the Ukraine war put a strain on consumer confidence. We are encouraged by reports of GPU pricing falling and availability coming back to normal and we expect that to result in a surge of self-built gaming PC activity in H2 of this year," he added.
  • The firm will release its Q1 results and outlook on May 5.
  • CRSR stock declined ~17% YTD.

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