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Why Is Logitech (LOGI) Up 17.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for Logitech (LOGI - Free Report) . Shares have added about 17.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Logitech due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Logitech Beats on Q3 Earnings, Raises FY21 Outlook
Logitech reported third-quarter fiscal 2021 results, wherein both bottom and top lines surpassed estimates. Non-GAAP earnings came in at $2.45 per share, surpassing the Zacks Consensus Estimate by a whopping 126.9%. The bottom line also improved from the year-ago quarter’s earnings of 84 cents per share.
Net sales of $1.67 billion outpaced the consensus mark of $1.23 billion, and surged 85% year over year in dollars and 80% 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 78% year over year to $436.4 million. Video Collaboration sales skyrocketed 218% year on year to $292.5 million. The Audio & Wearables segment sales jumped 87% year over year to $153 million.
Revenues from Pointing Devices increased 38% year over year to $213.6 million. Keyboards & Combos sales grew 40% to $218.3 million. Revenues from PC Webcams were up a whopping 309% to $131.7 million, while Tablet and Other Accessories sales surged 342% to $138.1 million.
However, Mobile Speakers’ sales fell 22% to $72.6 million. The Smart Home segment sales declined 33% year over year to $10.6 million. The Other segment revenues came in at $0.61 million during the fiscal third quarter.
Margins & Operating Metrics
Non-GAAP gross profit jumped more than two folds to $754.2 million from the year-ago quarter’s figure of $339.6 million. Non-GAAP gross margin expanded 760 basis points (bps) from the prior-year quarter to 45.2%.
Non-GAAP operating expenses flared up 47.8% to $277.9 million. Nonetheless, as a percentage of revenues, non-GAAP operating expenses decreased to 16.7% from the year-ago quarter’s figure of 20.8%.
Non-GAAP operating income soared more than three-fold to $476.3 million from the $151.6 million reported in the year-ago quarter. Operating margin advanced 11.8 percentage points to 28.6%.
Liquidity
As of Dec 31, 2020, Logitech’s cash and cash equivalents were $1.39 billion compared with the $917.2 million recorded in the previous quarter.
Additionally, the company generated operating cash flow of $529.9 million during the fiscal third quarter. During the first nine months of fiscal 2021, the company generated $928.4 million.
Guidance
Logitech has raised its view for fiscal 2021. The company now expects non-GAAP operating income of $1.05 billion compared with the previously-guided range of $700-$725 million.
Revenues in the fiscal year are now anticipated to be up 57-60% year on year at constant currency, instead of the earlier forecast of a 35-40% increase.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 89.65% due to these changes.
VGM Scores
Currently, Logitech has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Logitech has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Logitech (LOGI) Up 17.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Logitech (LOGI - Free Report) . Shares have added about 17.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Logitech due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Logitech Beats on Q3 Earnings, Raises FY21 Outlook
Logitech reported third-quarter fiscal 2021 results, wherein both bottom and top lines surpassed estimates. Non-GAAP earnings came in at $2.45 per share, surpassing the Zacks Consensus Estimate by a whopping 126.9%. The bottom line also improved from the year-ago quarter’s earnings of 84 cents per share.
Net sales of $1.67 billion outpaced the consensus mark of $1.23 billion, and surged 85% year over year in dollars and 80% 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 78% year over year to $436.4 million. Video Collaboration sales skyrocketed 218% year on year to $292.5 million. The Audio & Wearables segment sales jumped 87% year over year to $153 million.
Revenues from Pointing Devices increased 38% year over year to $213.6 million. Keyboards & Combos sales grew 40% to $218.3 million. Revenues from PC Webcams were up a whopping 309% to $131.7 million, while Tablet and Other Accessories sales surged 342% to $138.1 million.
However, Mobile Speakers’ sales fell 22% to $72.6 million. The Smart Home segment sales declined 33% year over year to $10.6 million. The Other segment revenues came in at $0.61 million during the fiscal third quarter.
Margins & Operating Metrics
Non-GAAP gross profit jumped more than two folds to $754.2 million from the year-ago quarter’s figure of $339.6 million. Non-GAAP gross margin expanded 760 basis points (bps) from the prior-year quarter to 45.2%.
Non-GAAP operating expenses flared up 47.8% to $277.9 million. Nonetheless, as a percentage of revenues, non-GAAP operating expenses decreased to 16.7% from the year-ago quarter’s figure of 20.8%.
Non-GAAP operating income soared more than three-fold to $476.3 million from the $151.6 million reported in the year-ago quarter. Operating margin advanced 11.8 percentage points to 28.6%.
Liquidity
As of Dec 31, 2020, Logitech’s cash and cash equivalents were $1.39 billion compared with the $917.2 million recorded in the previous quarter.
Additionally, the company generated operating cash flow of $529.9 million during the fiscal third quarter. During the first nine months of fiscal 2021, the company generated $928.4 million.
Guidance
Logitech has raised its view for fiscal 2021. The company now expects non-GAAP operating income of $1.05 billion compared with the previously-guided range of $700-$725 million.
Revenues in the fiscal year are now anticipated to be up 57-60% year on year at constant currency, instead of the earlier forecast of a 35-40% increase.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 89.65% due to these changes.
VGM Scores
Currently, Logitech has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Logitech has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.