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Logitech International SA (LOGI - Analyst Report) recently provided an encouraging outlook for fiscal 2014 and 2015 on its Analyst and Investor Day on Mar 6, 2014. As a result, shares of the company move up by 5.8% to close at $16.86 yesterday, reflecting investor confidence in the company.

Logitech expects results in fiscal 2014 to come in above the higher end of its previously guided range. Hence, pro forma operating income is estimated at $125 million, the upper end of the previous guidance of $120–$125 million on sales of $2.1 billion.

For fiscal 2015, Logitech expects to generate revenues of $2.16 billion and pro forma operating income of $145 million, reflecting a significant increase from the earlier guidance (provided in May 2013) of $2.1 billion and non-GAAP operating income of $90 million.

The company also announced that its board of directors has approved a share buyback program worth $250 million in a concerted effort to increase returns to its investors.

This Zacks Rank #1 (Strong Buy) company is confident about its long-term growth on the back of the success of the restructuring plan initiated in Apr 2012. Since then, the company’s share prices have gained more than 80% till date.The company’s three-year turnaround plan was formulated to reduce costs while driving up profits and margins significantly.

Logitech has delivered positive earnings surprises in all of the last 4 quarters, with an average beat of 128%. In the last-reported quarter (third-quarter 2014), Logitech successfully reduced the operating costs to maintain its operating profit margin level at 7%.

The company has been working on its core business structure, including its designing, manufacturing and distribution system to improve the operational efficiency significantly. In the quarter, the company’s adjusted operating expenses went down for the first time in a five-year period. Despite this decline, the company reported an 18% sequential growth in revenues reflecting the success of its diligent operational execution.

In 2013, the company launched a number of innovative products including tablet covers and UE Mini Boom wireless speakers, which is a miniature version of the innovative high demand product, UE Boom. The strong demand for the accessories of the new Apple Inc’s (AAPL) iPad Air benefited the company significantly in the last quarter. The company is also developing the keyboard folios for the upcoming Samsung Galaxy Pro Tablets.

The growing adoption of new mobile platforms, such as tablets and smartphones in both mature and emerging markets, are paving the way for increased demand of Logitech’s peripherals and accessories going forward.

The Zacks Consensus Estimate for fiscal 2014 is currently pegged at 51 cents per share, reflecting a year over year growth of 142.9% while the same for fiscal 2015 is estimated to be 52 cents per share, translating to a year over year growth of about 2%.

Some other stocks worth considering in the computer and technology space include Ametek Inc. (AME - Analyst Report) and ADTRAN Inc. (ADTN - Analyst Report), both carrying a Zacks Rank #2 (Buy).

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