Back to top

Image: Shutterstock

Logitech (LOGI) Raises FY21 & Long-Term Financial Outlook

Read MoreHide Full Article

Logitech International S.A. (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.

salesforce.com, inc. Price, Consensus and EPS Surprise

salesforce.com, inc. Price, Consensus and EPS Surprise

salesforce.com, inc. price-consensus-eps-surprise-chart | salesforce.com, inc. Quote

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 - Free Report) , Apple (AAPL - Free Report) and Facebook (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.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>