Corsair Expects Q3 Revenues to Miss Consensus Estimates; Shares Fall

Shares of Corsair Gaming, Inc. (CRSR) declined 7% in Thursday’s extended trading session after the company revealed that it expects to report Q3 net revenues of $391 million, much lower than the Street’s expectations of $485.2 million.

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Corsair develops and manufactures high-performance gear and technology for gamers, content creators, and PC enthusiasts. (See Corsair stock charts on TipRanks)

The company said that the key reasons behind the poor revenue guidance are global logistics and supply chain issues, especially the lack of affordable GPUs in the retail channel. Corsair expects this to have impacted revenues by about 10%.

Corsair’s CEO Andy Paul said, “After a slower start to the third quarter of 2021, we have seen a return to more typical seasonal ordering with September being the strongest month in the quarter.” (See Insiders’ Hot Stocks on TipRanks)

For full-year 2021, the company guided for net revenues to be between $1.83 billion and $1.93 billion, compared with Street’s expectations of $2 billion.

A couple of months ago, Barclays analyst Mario Lu reiterated a Buy rating on the stock but lowered his price target to $42 from $47. The new price target implies 55.7% upside potential from current levels.

Overall, the stock commands a Strong Buy consensus rating based on 3 Buys and 1 Hold. The average Corsair price target of $39 implies 44.6% upside potential to current levels.

TipRanks data shows that financial blogger opinions are 95% Bullish on CRSR, compared to a sector average of 71%.