Business Corpus: Headset Maker Hoping For Sales Lift From 'Black Ops 4,' 'Red Dead' GamesVideo game headset maker Turtle Beach signaled continuing strong sales thanks to "Fortnite" and upcoming games like "Call of Duty: Black Ops 4." The post Headset Maker Hoping For Sales Lift From 'Black Ops 4,' 'Red Dead' Games appeared first on Investor's Business Daily.

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Video game headset maker Turtle Beach (HEAR) on Thursday signaled continuing strong sales thanks to "battle royale" games like "Fortnite" and upcoming console games like Activision Blizzard's (ATVI) "Call of Duty: Black Ops 4."

The San Diego-based company announced preliminary results for the third quarter that were well above expectations. It also expressed confidence in robust sales of headsets for new game releases as well as replacement headsets.

Turtle Beach expects to report third-quarter sales of $73 million to $74 million, compared with its prior guidance of $65 million. At the midpoint, its sales would be up 104% year over year.

It forecast earnings per share of 74 cents to 78 cents for the quarter ended Sept. 30. That would be a major improvement from the year-earlier period when it lost 4 cents a share. The company has not fixed a date for final release of Q3 earnings results.

Wall Street was modeling Turtle Beach to earn 46 cents a share on sales of $65.6 million in the third quarter.

Turtle Beach Jumps On Earnings Surprise

Turtle Beach stock jumped 4.7% to close at 18.01 on the stock market today. It had been trending down over concerns that it would be impacted by the declining popularity of "Fortnite."

"The momentum we built in the first half of the year continued through the third quarter," Chief Executive Juergen Stark said in a news release. "The strong increase in demand for gaming headsets that occurred with the rise of the 'battle royale' genre has continued, drawing new gamers into the market, leading veteran gamers to upgrade their gear, and increasing the overall usage rate and installed base of gaming headsets."

The launches of "Black Ops 4" and Take-Two Interactive Software's (TTWO) "Red Dead Redemption 2" "should provide another set of high headset usage games," Stark said. "Black Ops 4" is set for release on Friday. "Red Dead" is due out Oct. 26.

Stark noted that gamers on average replace their headset every 20 to 24 months.

Waning 'Fortnite' Popularity Should Help 'Black Ops 4' Video Game

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