Logitech International S.A. ( LOGI Quick Quote LOGI - Free Report) today morning raised its fiscal 2021 as well as long-term financial outlook. The manufacturer of computer peripherals and software has also issued the guidance for fiscal 2022.
For fiscal 2021, the company now estimates non-GAAP operating income of $1.1 billion compared with the previous projection of $1.05 billion. Revenues in the fiscal year are now anticipated to be up approximately 63% year on year at constant currency, instead of the earlier forecast of a 57-60% increase.
For fiscal 2022, Logitech anticipates sales to remain flat (+/- 5%) year over year. Moreover, adjusted operating income is expected to be in the range of $750-$800 million. The year-over-year projected decline in fiscal 2022 operating income reflects the company’s continued investments in hardware and software innovation, marketing and go-to-market capabilities.
Additionally, Logitech has raised its long-term sales growth projection to 8-10% at constant currency from the earlier forecast of high-single-digit increase. The company now projects adjusted gross margin to be between 39% and 44%, up from the previously-guided range of 36-40%. Non-GAAP operating income is now expected in the band of 14-17%, significantly higher than the earlier anticipation of 11-14%.
Remote Working Trend is Boosting Peripheral Sales
Logitech has been benefiting from increased demand for its Video Collaboration tools, mainly on 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-induced stay-at-home wave.
In the third quarter of fiscal 2021, 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 surged 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.
Zacks Rank & Other Key Picks
Logitech currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the broader technology sector include
Zoom Video Communications ( ZM Quick Quote ZM - Free Report) , Apple ( AAPL Quick Quote AAPL - Free Report) and Facebook ( FB Quick Quote FB - Free Report) , all carrying a Zacks Rank #2 (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, Apple and Facebook is currently pegged at 25%,11.5% and 19.2%, respectively.
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