We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Logitech (LOGI) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Logitech International SA (LOGI - Free Report) reported solid fourth-quarter fiscal 2019 results, wherein both the top line and the bottom line surpassed estimates and improved year over year.
Non-GAAP earnings came in at 38 cents per share, surpassing the Zacks Consensus Estimate of 30 cents. The bottom line also improved from the year-ago quarter figure of 32 cents.
Net sales of $624.3 million beat the consensus estimate of $619 million and rose 5% year over year. Revenues were up 9% in constant currency. Revenue growth stemmed from consistent strength in Gaming, Video Collaboration, and Creativity & Productivity businesses.
Segmental Details
Logitech’s Gaming segment jumped 9% year over year to $137.6 million. Meanwhile, Video Collaboration grew 27% to $69.4 million.
Mobile Speakers business showed significant improvement after a disappointing fiscal third quarter, and surged 62% to $22.7 million. Audio & Wearables segment also witnessed 18% year-over-year growth.
However, Smart Home segment put up a disappointing show. Sales in this segment plunged 28% to $11.5 million.
Logitech’s Creativity and Productivity business comprises four sub-business lines — Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories. Apart from Pointing Devices, which grew 1% year over year, each of the other lines registered decline. Keyboards & Combos fell 3%, PC Webcams dived 4%, and Tablet & Other Accessories plunged 14%.
Notably, the Other segment, whose products the company is currently in the process of transitioning out of, registered a whopping 377% surge in the reported quarter.
Margins & Operating Metrics
Non-GAAP gross profit rose 3.9% year over year to $237.2 million. Non-GAAP gross margin increased 160 basis points (bps) to 38%,
Non-GAAP operating expenses jumped 7.8% to $173.1 million.
Non-GAAP operating income climbed 16.3% to $64.1 million. Operating margin of 10.3% expanded 100 bps from the year-ago quarter.
Logitech International S.A. Price, Consensus and EPS Surprise
As of Mar 31, 2019, Logitech’s cash and cash equivalents were $604.5 million compared with $584.5 million in the previous quarter.
Additionally, the company generated operating cash flow of $31.7 million in the fiscal fourth quarter compared with $176.2 million in the prior quarter.
Full-Year Highlights
For full-year fiscal 2019, Logitech recorded the sixth consecutive year of growth. Revenues of $2.8 billion grew 9% year over year. The top-line growth was 10% in constant currency year over year. Notably, the rise came within the company’s guided range.
Non-GAAP operating income increased 23% to $352 million. Non-GAAP earnings jumped 26% to $2.01 per share, compared with $1.6 a year ago.
Guidance
Logitech provided view for fiscal 2020. The company expects the non-GAAP operating income to be $375-$385 million.
Revenue growth is anticipated within mid-high single digits in constant currency.
Zacks Rank and Other Key Picks
Logitech currently has a Zacks Rank #1 (Strong Buy).
Long-term earnings growth rate for CACI, Cadence and Verint is projected to be 10%, 12% and 11%, respectively.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Image: Bigstock
Logitech (LOGI) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Logitech International SA (LOGI - Free Report) reported solid fourth-quarter fiscal 2019 results, wherein both the top line and the bottom line surpassed estimates and improved year over year.
Non-GAAP earnings came in at 38 cents per share, surpassing the Zacks Consensus Estimate of 30 cents. The bottom line also improved from the year-ago quarter figure of 32 cents.
Net sales of $624.3 million beat the consensus estimate of $619 million and rose 5% year over year. Revenues were up 9% in constant currency. Revenue growth stemmed from consistent strength in Gaming, Video Collaboration, and Creativity & Productivity businesses.
Segmental Details
Logitech’s Gaming segment jumped 9% year over year to $137.6 million. Meanwhile, Video Collaboration grew 27% to $69.4 million.
Mobile Speakers business showed significant improvement after a disappointing fiscal third quarter, and surged 62% to $22.7 million. Audio & Wearables segment also witnessed 18% year-over-year growth.
However, Smart Home segment put up a disappointing show. Sales in this segment plunged 28% to $11.5 million.
Logitech’s Creativity and Productivity business comprises four sub-business lines — Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories. Apart from Pointing Devices, which grew 1% year over year, each of the other lines registered decline. Keyboards & Combos fell 3%, PC Webcams dived 4%, and Tablet & Other Accessories plunged 14%.
Notably, the Other segment, whose products the company is currently in the process of transitioning out of, registered a whopping 377% surge in the reported quarter.
Margins & Operating Metrics
Non-GAAP gross profit rose 3.9% year over year to $237.2 million. Non-GAAP gross margin increased 160 basis points (bps) to 38%,
Non-GAAP operating expenses jumped 7.8% to $173.1 million.
Non-GAAP operating income climbed 16.3% to $64.1 million. Operating margin of 10.3% expanded 100 bps from the year-ago quarter.
Logitech International S.A. Price, Consensus and EPS Surprise
Logitech International S.A. Price, Consensus and EPS Surprise | Logitech International S.A. Quote
Liquidity
As of Mar 31, 2019, Logitech’s cash and cash equivalents were $604.5 million compared with $584.5 million in the previous quarter.
Additionally, the company generated operating cash flow of $31.7 million in the fiscal fourth quarter compared with $176.2 million in the prior quarter.
Full-Year Highlights
For full-year fiscal 2019, Logitech recorded the sixth consecutive year of growth. Revenues of $2.8 billion grew 9% year over year. The top-line growth was 10% in constant currency year over year. Notably, the rise came within the company’s guided range.
Non-GAAP operating income increased 23% to $352 million. Non-GAAP earnings jumped 26% to $2.01 per share, compared with $1.6 a year ago.
Guidance
Logitech provided view for fiscal 2020. The company expects the non-GAAP operating income to be $375-$385 million.
Revenue growth is anticipated within mid-high single digits in constant currency.
Zacks Rank and Other Key Picks
Logitech currently has a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader Computer and Technology sector are CACI International, Inc. (CACI - Free Report) , Cadence Design Systems, Inc. (CDNS - Free Report) and Verint Systems Inc. (VRNT - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for CACI, Cadence and Verint is projected to be 10%, 12% and 11%, respectively.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>