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After posting remarkable third-quarter fiscal 2017 results and raising its 2017 guidance, Logitech International SA (LOGI - Free Report) released a very optimistic outlook for fiscal 2018 as well.
The company projects high single-digit growth in constant currency for retail sales in fiscal 2018. Further, it expects to generate non-GAAP operating income in the range of $250–$260 million. Logitech also announced a new share buyback program worth $250 million, as part of its three-year capital allocation framework.
The company reiterated its fiscal 2017 guidance as well. Logitech expects to post non-GAAP operating income in the range of $225–$230 million. Further, the company now estimates its Retail sales to grow 12–13% in constant currency terms in fiscal 2017, up from the prior projections of 8–10% growth.
As a tech company, Logitech stands out from the crowd as it managed to thwart industry headwinds like restrained corporate spending. The company has posted double digit growth in almost every product it has sold amidst a tough consumer spending environment.
Late in January, the company posted third-quarter fiscal 2017 results, where it easily surpassed earnings and revenue estimates. In fact, its adjusted earnings dwarfed the Zacks Consensus Estimate by nearly 64%. Revenues grew 7.3% over the comparable quarter last year.
Year over year, its retail segment climbed 13% on broad-based growth, with the Gaming and Video Collaboration categories (up 38% and 37% respectively) standing out as the strongest, followed by the Mobile Speakers category (up 25%).
Predictably, investors have cheered the company’s robust financials and outlook. Logitech’s stock price has taken off sharply in the recent past. The company rallied a whopping 84.4% over the past one year. The gain is significantly higher than the Zacks classified Computer-Peripheral Equipment industry’s average return of 29.2%.
Logitech’s earnings results highlight the company’s impressive traction across its markets. The company has been benefiting from its sturdy business model that emphasizes on maximizing profit in PC peripherals and expanding into new business categories. Despite declining PC sales and macroeconomic uncertainty, Logitech seems to be on a sustainable growth curve.
Moreover,the company has also been witnessing bullish analyst activity on the earnings estimate revision front lately, with estimates moving north. Over the past couple of months, the company witnessed two upward estimate revisions versus none downward. Consequently, over the past 60 days, the Zacks Consensus Estimate jumped 27.3% and 13.5% to $1.12 and $1.18 for fiscal 2017 and 2018, respectively. Thanks to this optimistic outlook, Logitech sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other stocks worth a look in the broader sector include Check Point Software Technologies Ltd. (CHKP - Free Report) , Dassault Systemes SA (DASTY - Free Report) and Aspen Technology, Inc. (AZPN - Free Report) . Check Point Software and Dassault sport the same rank as Logitech, while Aspen Technology carries a Zacks Rank #2 (Buy).
Check Point Software is a leading provider of policy-based enterprise security and traffic management solutions. The company has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 6%.
Dassault Systemes, a globally recognized leader in CAD/CAM/CAE and PDM II markets, has a striking earnings surprise history for the trailing four quarters, beating estimates all through for an average positive surprise of 11%.
Aspen Technology is a recognized expert and leading provider of award-winning process optimization software and services. The company has beaten estimates consistentlyeach time over the trailing four quarters, with an average positive surprise of 20.3%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
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Logitech's FY18 Guidance Bullish, Retail Growth Robust
After posting remarkable third-quarter fiscal 2017 results and raising its 2017 guidance, Logitech International SA (LOGI - Free Report) released a very optimistic outlook for fiscal 2018 as well.
The company projects high single-digit growth in constant currency for retail sales in fiscal 2018. Further, it expects to generate non-GAAP operating income in the range of $250–$260 million. Logitech also announced a new share buyback program worth $250 million, as part of its three-year capital allocation framework.
The company reiterated its fiscal 2017 guidance as well. Logitech expects to post non-GAAP operating income in the range of $225–$230 million. Further, the company now estimates its Retail sales to grow 12–13% in constant currency terms in fiscal 2017, up from the prior projections of 8–10% growth.
As a tech company, Logitech stands out from the crowd as it managed to thwart industry headwinds like restrained corporate spending. The company has posted double digit growth in almost every product it has sold amidst a tough consumer spending environment.
Late in January, the company posted third-quarter fiscal 2017 results, where it easily surpassed earnings and revenue estimates. In fact, its adjusted earnings dwarfed the Zacks Consensus Estimate by nearly 64%. Revenues grew 7.3% over the comparable quarter last year.
Year over year, its retail segment climbed 13% on broad-based growth, with the Gaming and Video Collaboration categories (up 38% and 37% respectively) standing out as the strongest, followed by the Mobile Speakers category (up 25%).
Predictably, investors have cheered the company’s robust financials and outlook. Logitech’s stock price has taken off sharply in the recent past. The company rallied a whopping 84.4% over the past one year. The gain is significantly higher than the Zacks classified Computer-Peripheral Equipment industry’s average return of 29.2%.
Logitech’s earnings results highlight the company’s impressive traction across its markets. The company has been benefiting from its sturdy business model that emphasizes on maximizing profit in PC peripherals and expanding into new business categories. Despite declining PC sales and macroeconomic uncertainty, Logitech seems to be on a sustainable growth curve.
Moreover,the company has also been witnessing bullish analyst activity on the earnings estimate revision front lately, with estimates moving north. Over the past couple of months, the company witnessed two upward estimate revisions versus none downward. Consequently, over the past 60 days, the Zacks Consensus Estimate jumped 27.3% and 13.5% to $1.12 and $1.18 for fiscal 2017 and 2018, respectively. Thanks to this optimistic outlook, Logitech sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Logitech International S.A. Price and Consensus
Logitech International S.A. Price and Consensus | Logitech International S.A. Quote
Stocks to Consider
Other stocks worth a look in the broader sector include Check Point Software Technologies Ltd. (CHKP - Free Report) , Dassault Systemes SA (DASTY - Free Report) and Aspen Technology, Inc. (AZPN - Free Report) . Check Point Software and Dassault sport the same rank as Logitech, while Aspen Technology carries a Zacks Rank #2 (Buy).
Check Point Software is a leading provider of policy-based enterprise security and traffic management solutions. The company has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 6%.
Dassault Systemes, a globally recognized leader in CAD/CAM/CAE and PDM II markets, has a striking earnings surprise history for the trailing four quarters, beating estimates all through for an average positive surprise of 11%.
Aspen Technology is a recognized expert and leading provider of award-winning process optimization software and services. The company has beaten estimates consistentlyeach time over the trailing four quarters, with an average positive surprise of 20.3%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>