News

Corsair Gaming, Inc. CRSR reported mixed fourth-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. However, the top and the bottom line increased on a year-over-year basis.

The upside was backed by strong demand for new products, reduced promotional activities and improved inventory levels. Also, strong Gamer and Creator Peripherals segment performance added to the positive.

The company returned to target inventory levels in the channel and warehouses, with some categories even lighter than expected, including recent product launches. CRSR expects to build on this momentum in 2024, with a strong demand outlook for new products, improved profitability and continued growth in adjusted EBITDA.

Following the results, CRSR’s stock dropped 4.1% in the after-hour trading session on Feb 13, 2024.

Earnings & Revenue Discussion

During fourth-quarter 2023, CRSR reported adjusted earnings per share (EPS) of 22 cents, missing the Zacks Consensus Estimate of 24 cents. Yet, the bottom line increased 10% from 20 cents reported a year ago.

Corsair Gaming, Inc. Price, Consensus and EPS Surprise

Quarterly revenues of $417.3 million lagged the consensus mark of $435.6 million. The top line rose 4.7% from $398.7 million reported in the year-ago quarter.

Segmental Detail

Gaming Components and Systems: During fourth-quarter 2023, revenues in the segment amounted to $280.5 million, down 0.2% from the prior-year quarter’s levels. The segment’s gross profit was $51.8 million, down 11% from 58.2 million in the year-ago quarter. Gross profit margin contracted 220 basis points (bps) year over year to 18.5%.

Gamer and Creator Peripherals: Revenues in the segment increased 16.1% year over year to $136.8 million. The segment’s gross profit was $50.9 million, up 28.3% from 39.7 million in the year-ago quarter. Gross profit margin expanded 350 bps year over year to 37.2%.

Operating Highlights

During fourth-quarter 2023, gross profit increased 4.9% year over year to 102.7 million. Gross profit margin expanded 10 bps year over year to 24.6%.

Adjusted operating income of $31.8 million increased 7.5% from the year-ago quarter’s levels.

Adjusted EBITDA of $33.7 million increased 5.4% year over year. The adjusted EBITDA margin rose 10 bps year over year to 8.1%.

2023 Highlights

Net revenues in 2023 came in at $1,459.9 million compared with $1,375.1 million in 2022.

Adjusted operating income in 2023 came in at $85.4 million, up 147% from $34.6 million reported in 2022.

Adjusted EBITDA totaled $95.1 million compared with $46.5 million a year ago.

In 2023, diluted earnings per share came in at 55 cents compared with 18 cents reported in the previous year.

Balance Sheet

As of Dec 31, 2023, cash and restricted cash balance amounted to $178.3 million compared with $153.8 million at 2022-end. Net long-term debt was $186 million, down from $232.2 million at 2022-end.

Net cash provided by operating activities in fourth-quarter 2023 was $57.1 million, up from $21.2 million reported in the year-ago quarter.

2024 Outlook

For 2024, Corsair Gaming expects net revenues in the range of $1.45-$1.60 billion, up 4.5% from the previous year’s figure, considering the mid-point.

The adjusted operating income is expected to be in the range of $92-$112 million, up 19.4% from the previous year’s levels.

It anticipates adjusted EBITDA within $105-$125 million, up 20.9% year over year.

Zacks Rank & Recent Consumer Discretionary Releases

Corsair Gaming currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Boyd Gaming Corporation BYD reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined from the prior-year quarter’s figure.

The company’s quarterly results were backed by a diversified portfolio, consistent core customer trends and solid returns from its recent property investments. Yet, year-over-year high total operating costs and expenses partially offset the upside.

Wynn Resorts, Limited WYNN reported impressive fourth-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Also, the top and the bottom lines rose year over year.

The results reflect solid contributions from the company’s Macau and Las Vegas Operations. Also, non-gaming revenue-boosting strategies and expansion efforts bode well. In the fourth quarter, the company launched its concession-related capital project in collaboration with Illuminarium and is focusing on planning other concession-related projects. Solid progress concerning the construction at Wynn Al Marjan Island is also encouraging.

Mattel, Inc. MAT reported fourth-quarter 2023 results, wherein earnings and revenues missed the Zacks Consensus Estimate. However, the top and the bottom line increased on a year-over-year basis.

The company’s quarterly results reflect growth driven by its diverse product offerings, primarily in the North America segment. Success from the Barbie movie as well as notable progress in entertainment across film, television, digital and publishing bode well. Currency fluctuation risks partially offset this uptrend. Exceeding the quarter’s Optimizing for Growth cost savings program target was encouraging, thus positioning Mattel well to continue focusing on growing its IP-driven toy business and expand the entertainment offering through 2024.

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