Logitech International (LOGI - Free Report) reported fourth-quarter fiscal 2020 results, wherein both bottom and top lines surpassed estimates.
Non-GAAP earnings came in at 42 cents per share, surpassing the Zacks Consensus Estimate by 16.7%. The bottom line also improved from the year-ago quarter’s 38 cents.
Net sales of $709 million surpassed the consensus mark of $661 million and rose 14% year over year in dollars and 15% at constant currency.
The year-over-year increase stemmed from strong growth across all business segments. Bracken Darrell, president and CEO, Logitech, noted, "Video conferencing, working remotely, creating and streaming content, and gaming are long-term secular trends driving our business. The pandemic hasn’t changed these trends: it has accelerated them."
Segmental Details
Logitech’s Gaming segment’s sales grew 8% year over year to $148.9 million. Video Collaboration sales witnessed a 60% rally to $110.7 million.
However, Mobile Speakers’ sales fell 7% to $21.2 million.
Audio & Wearables segment sales remained flat year over year at $65 million. Smart Home segment sales fell 28% year over year to $8.3 million.
Logitech’s Creativity and Productivity business comprises four sub-business lines — Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories. Revenues from Pointing Devices, and Keyboards and Combos grew 3% and 12% year over year, respectively. Moreover, revenues from PC Webcams, and Tablet and Other Accessories surged 32% and 36%, respectively.
The Other segment declined 59% to $94 million in the quarter.
Margins & Operating Metrics
Non-GAAP gross profit rose 19% year over year to $282.5 million. Non-GAAP gross margin expanded 180 basis points (bps) from the year-ago quarter to 39.8%.
Non-GAAP operating expenses grew 17.6% to $203.5 million.
Non-GAAP operating income climbed 23% to $79 million. Operating margin of 11.1% expanded 80 bps.
Liquidity
As of Mar 31, 2020, Logitech’s cash and cash equivalents were $715.6 million compared with $656.05 million in the previous quarter.
Additionally, the company generated operating cash flow of $100.8 million in the fiscal fourth quarter compared with $181.12 million in the prior quarter.
Fiscal 2020 Highlights
Revenues for the year grew 7% in dollars and 9% at constant currency to $2.98 billion. Non-GAAP earnings of $2.15 grew 7% year over year.
Cash flow from operations was $425 million, up from $305 million a year ago.
Guidance
Logitech provided a view for fiscal 2021. The company expects non-GAAP operating income of $380-$400 million.
Revenue growth is anticipated in the mid-single-digit range at constant currency.
Zacks Rank and Other Stocks to Consider
Logitech currently sports a Zacks Rank #1 (Strong Buy).
A few other similar-ranked stocks in the broader technology sector are Advanced Semiconductor Engineering Inc (ASX - Free Report) , NeoPhotonics Corporation and Twilio Inc (TWLO - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Advanced Semiconductor, NeoPhotonics and Twilio is currently pegged at 26.63%, 15% and 26.61%, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Logitech International (LOGI - Free Report) reported fourth-quarter fiscal 2020 results, wherein both bottom and top lines surpassed estimates.
Non-GAAP earnings came in at 42 cents per share, surpassing the Zacks Consensus Estimate by 16.7%. The bottom line also improved from the year-ago quarter’s 38 cents.
Net sales of $709 million surpassed the consensus mark of $661 million and rose 14% year over year in dollars and 15% at constant currency.
The year-over-year increase stemmed from strong growth across all business segments. Bracken Darrell, president and CEO, Logitech, noted, "Video conferencing, working remotely, creating and streaming content, and gaming are long-term secular trends driving our business. The pandemic hasn’t changed these trends: it has accelerated them."
Segmental Details
Logitech’s Gaming segment’s sales grew 8% year over year to $148.9 million. Video Collaboration sales witnessed a 60% rally to $110.7 million.
However, Mobile Speakers’ sales fell 7% to $21.2 million.
Audio & Wearables segment sales remained flat year over year at $65 million. Smart Home segment sales fell 28% year over year to $8.3 million.
Logitech’s Creativity and Productivity business comprises four sub-business lines — Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories. Revenues from Pointing Devices, and Keyboards and Combos grew 3% and 12% year over year, respectively. Moreover, revenues from PC Webcams, and Tablet and Other Accessories surged 32% and 36%, respectively.
The Other segment declined 59% to $94 million in the quarter.
Margins & Operating Metrics
Non-GAAP gross profit rose 19% year over year to $282.5 million. Non-GAAP gross margin expanded 180 basis points (bps) from the year-ago quarter to 39.8%.
Non-GAAP operating expenses grew 17.6% to $203.5 million.
Non-GAAP operating income climbed 23% to $79 million. Operating margin of 11.1% expanded 80 bps.
Liquidity
As of Mar 31, 2020, Logitech’s cash and cash equivalents were $715.6 million compared with $656.05 million in the previous quarter.
Additionally, the company generated operating cash flow of $100.8 million in the fiscal fourth quarter compared with $181.12 million in the prior quarter.
Fiscal 2020 Highlights
Revenues for the year grew 7% in dollars and 9% at constant currency to $2.98 billion. Non-GAAP earnings of $2.15 grew 7% year over year.
Cash flow from operations was $425 million, up from $305 million a year ago.
Guidance
Logitech provided a view for fiscal 2021. The company expects non-GAAP operating income of $380-$400 million.
Revenue growth is anticipated in the mid-single-digit range at constant currency.
Zacks Rank and Other Stocks to Consider
Logitech currently sports a Zacks Rank #1 (Strong Buy).
A few other similar-ranked stocks in the broader technology sector are Advanced Semiconductor Engineering Inc (ASX - Free Report) , NeoPhotonics Corporation and Twilio Inc (TWLO - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Advanced Semiconductor, NeoPhotonics and Twilio is currently pegged at 26.63%, 15% and 26.61%, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on LOGI - FREE
Get the latest research report on ASX - FREE
Get the latest research report on TWLO - FREE