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Logitech's (LOGI) Q2 Earnings Beat Estimates, FY21 View Up

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Logitech International (LOGI - Free Report) reported second-quarter fiscal 2021 results, wherein both bottom and top lines surpassed estimates. Non-GAAP earnings came in at $1.87 per share, surpassing the Zacks Consensus Estimate by a whopping 206.6%. The bottom line also improved from the year-ago quarter’s 50 cents.

Net sales of $1.26 billion surpassed the consensus mark of $841.1 million, and surged 75% year over year in dollars and 73% at constant currency.

Logitech has been benefiting from increased demand for its Video Collaboration tools mainly driven by the rising work-from-home and learn-from-home trends. Also, the PC peripheral market is witnessing strong traction, which is aiding top-line growth. Additionally, demand for gaming products has shot up on the growing popularity of online video games and eSports amid the pandemic-led stay-at-home environment.

Segmental Details

Logitech’s Gaming segment sales soared 85% year over year to $297.7 million. Video Collaboration sales skyrocketed 164% year over year to $236.7 million. Audio & Wearables segment sales jumped 68% year over year to $114.3 million.

Revenues from Pointing Devices increased 27% year over year to $169.1 million. Keyboards & Combos sales grew 45% to $2016 million. Revenues from PC Webcams were up a whopping 256% to $102.5 million, while Tablet and Other Accessories sales surged 145% to $83.1 million.

However, Mobile Speakers’ sales fell 24% to $43.6 million. The Smart Home segment sales declined 9% year over year to $8.6 million. The Other segment revenues declined 19% to $21,000 during the fiscal second quarter.

Margins & Operating Metrics

Non-GAAP gross profit jumped more than two folds to $574.3 million from the year-ago quarter’s $276.5 million. Non-GAAP gross margin expanded 730 basis points (bps) from the prior-year quarter to 45.7%.

Non-GAAP operating expenses flared up 18% to $220.8 million.

Non-GAAP operating income soared nearly three-fold to $353.5 million from the $89.4 million reported in the year-ago quarter. Operating margin advanced 15.7 percentage points to 28.1%.


As of Sep 30, 2020, Logitech’s cash and cash equivalents were $917.2 million compared with the $809.4 million recorded in the previous quarter.

Additionally, the company generated operating cash flow of $279.7 million during the fiscal second quarter compared with the prior quarter’s $118.8 million. During the first-half of fiscal 2021, the company generated $398.5 million.


Logitech has raised its view for fiscal 2021. The company now expects non-GAAP operating income of $700-$725 million compared with the previously-guided range of $410-$425 million.

Revenues are now anticipated to be up 35-40% year over year at constant currency, instead of the earlier forecast of a 10-13% increase.

Zacks Rank and Stocks to Consider

Logitech currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector include Zoom Video Communications (ZM - Free Report) ,, inc. (CRM - Free Report) and Intuit Inc. (INTU - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Zoom, Salesforce and Intuit is currently pegged at 25%, 15.7%, and 14.5%, respectively.

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