Manufacturer of high-end, high-performance video game products Corsair Gaming (NASDAQ: CSRS) the stock has recently risen and sold hard on the heels of the stock market momentum meme. However, a look under the hood reveals improving fundamentals and strong tailwinds that can lift stocks from certain price support levels. the pandemic accelerated the adoption of video games in mobile, console and desktop / PC. Corsair was a pandemic benefactor who will again benefit from the reopening as the game is part of the new normal. The addictive nature of competitive and online games is here to stay and is incredibly tacky. Although there may be some return, the tail winds continue to improve despite the acceleration of COVID-19[female[feminine vaccinations in the United States 5G deployment will speed up the quality of the game in addition to more apps and games. The backlog on next-gen consoles that most gamers still frustration wait to buy from Sony PlayStation 5 (NYSE: SNE) and or Microsoft Xbox (NASDAQ: MSFT) could fuel the migration to much more powerful PC gaming systems. The wave of games will continue to grow. Cautious investors looking for exposure to a leading market player in this industry can watch for timely pullbacks in Corsair Gaming stocks.
Publication of results for the first quarter of fiscal 2021
On May 4, 2021, Corsair released its first quarter 2021 tax results for the quarter ending March 2021. The company reported earnings per share (EPS) of $ 0.58, beating analyst estimates by 0.33 USD, from 0.25 USD. Revenue rose 71.6% year-over-year (year-over-year) to $ 529.4 million, beating analysts’ consensus estimate of $ 443.27 million. Net revenue for the Gaming and Creator Devices segment was $ 175.9 million, up 131.9% year-on-year. The gaming components segment grew 51.9% year-on-year to $ 353.5 million. Gross profit increased 103.9% year-on-year with a gross margin of 30.3% year-on-year. The Company reduced its debt by $ 28 million with a remaining net debt of $ 177.3 million and outstanding principal of $ 299 million. Corsair CEO Any Paul said: “We are delighted with our financial performance and strategic progress in the first quarter. Final demand remained strong for our products and our new products such as the K65 RGB mini keyboard and new accessories from Elgato got off to a good start. We launched 29 new products in the first quarter and expect this hectic pace of new product launches to continue throughout the year with several new products to come. He noted that key component supplies are still ‘tight’ and continued: ‘Due to our above-expected performance in the first quarter and our current views for the remainder of the year, we have raised our annual forecast. for 2021 ”.
Guidance increase upward
Corsair Gaming increased its turnover for the year 2021 between 1.9 and 2.1 billion dollars, against 1.91 billion dollars according to analysts’ estimates. The Company increased its adjusted operating income to between $ 235 million and $ 255 million, from $ 205 million to $ 220 million as previously forecast. The company raised its Adjusted EBITDA to between $ 245 million and $ 265 million, from $ 215 million to $ 230 million.
Take-out conference call
CEO Paul set the tone: “We have seen continued growth in the purchase and construction of $ 2,000 gaming PCs, which we believe indicates that one expects to play games. heavy PC games over the next few years, and to purchase subsequent accessories. The estimated favorable first quarter shipments mix high margin products, leading to record gross margins in both our segments, 39.1% in the Gaming segment and 25.9% in our Components segment. He cautioned against expecting these margins every subsequent quarter, despite strong belief that they can be met and exceeded. He set the bar high and then lowered it a bit. He also added, “We are very pleased to see that in the first quarter we were number 1 in the market in all categories of gaming components that NVD monitors in the United States, which is our largest market. The growth in home broadcasting has led Corsair to become the market leader in video capture cards and lighting in addition to gaining market share from its Wave microphone. The company gained a 28% market share in gaming PC cases. The company saw “rapid sales” of its pre-made PC systems, notably the ORIGIN PC and the CORSAIR VENGEANCE PC. He concluded, “… we will be adding significant resources to the business this year, both in marketing and R&D as well as infrastructure as we move towards $ 2 billion in revenue.
Opportunistic CRSR Withdrawal Levels
Using rifle cards on the weekly and daily timelines provides a broader view of the playing field for CRSR actions. Weekly guns chart shows extreme spike which caused stocks to contract and peak below $ 42.80 Fibonacci level (fib). This paused the weekly downtrend as the 5-period moving average (MA) held steady at $ 31.80, along with the 15-period MA at $ 32.62. The Weekly Stochastic has crossed and is stalling on the price pullback. From there he can form a bullish mini puppy above the weekly 5 period MA or collapse if he comes down again. The weekly also formed a high market structure (MSH) sell trigger, with shares falling below the $ 44.36 level. The weekly upper Bollinger Bands stand at $ 44.03. The daily guns chart was on the rise until the sharp collapse in prices triggered a daily MSH sell trigger below $ 41.70. The daily weak market structure (MSL) buy triggers $ 33.88. The Daily Stochastic moved below the 30 band as the recent bullish momentum reversed sharply as stocks fell below the daily 5 period MA support at $ 34.04 and the last 15 period MA support at 32, $ 85. Cautious investors can watch opportunistic withdrawal levels at $ 31.24 fib, $ 30.07 fib, $ 28.74 fib, $ 27.70 fib, $ 23.91 fib and super fib $ 22.50. The upward trajectories are from the $ 36.11 level to the $ 45.24 level.
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