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Logitech (LOGI) Beats on Q4 Earnings, Raises FY22 Outlook
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Logitech International (LOGI - Free Report) reported fourth-quarter fiscal 2021 results, wherein both bottom and top lines surpassed estimates. Non-GAAP earnings came in at $1.45 per share, surpassing the Zacks Consensus Estimate by 51%. The bottom line also improved from the year-ago quarter’s earnings of 42 cents per share.
Net sales of $1.54 billion outpaced the consensus mark of $1.16 billion, and surged 117% year over year in dollars and 108% at constant currency.
Logitech has been benefiting from elevated demand for its Video Collaboration tools, mainly driven by the surging 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 stay-at-home scenario.
Logitech International S.A. Price, Consensus and EPS Surprise
Logitech’s Gaming segment sales soared 117% year over year to $323 million. Video Collaboration sales skyrocketed 248% year on year to $385.7 million. Revenues from PC Webcams were up a whopping 261% to $144.8 million, while Tablet and Other Accessories sales surged 268% to $117.1 million.
The Audio & Wearables segment sales jumped an astounding 100% year over year to $130.2 million. Revenues from Pointing Devices increased 31% year over year to $177.7 million. Keyboards & Combos sales grew 48% to $219.2 million.
Mobile Speakers’ sales increased 40% to $29.7 million. The Smart Home segment sales inched up 1% year over year to $8.4 million. However, the Other segment revenues fell 14% year on year to $0.08 million during the fiscal fourth quarter.
Margins & Operating Metrics
Non-GAAP gross profit jumped more than two folds to $716.3 million from the year-ago quarter’s figure of $282.4 million. Non-GAAP gross margin expanded 680 basis points (bps) from the prior-year quarter to 46.6%.
Non-GAAP operating expenses flared up 92.2% to $391.2 million. Nonetheless, as a percentage of revenues, non-GAAP operating expenses decreased to 25.5% from the year-ago quarter’s figure of 28.7%.
Non-GAAP operating income soared more than four-fold to $325.1 million from the $79 million reported in the year-ago quarter. Operating margin advanced 10.1 percentage points to 21.2%.
Liquidity and Shareholders’ Return
As of Mar 31, 2021, Logitech’s cash and cash equivalents were $1.75 billion compared with the $1.39 billion recorded in the previous quarter. Additionally, the company generated operating cash flow of $530.2 million during the fiscal fourth quarter. During fiscal 2021, the company generated $1.46 billion of cash flow from operating activities.
Concurrent with the fiscal fourth-quarter results, Logitech announced that its board of directors has increased the share-repurchase authorization limit to $1 billion from the $250 million authorized previously. Under the current authorization, the company has bought back $165 million worth of its common stocks. Therefore, the company has now $835 million remaining total authorization after the increase, which it required to complete through July 2023.
Additionally, Logitech’s board of directors has approved a proposal for fiscal 2021 dividend, which will be 10% higher than the dividend paid in fiscal 2020.
During the fourth quarter of fiscal 2021, the company repurchased shares worth $92.2 million. In fiscal 2021, it paid $146.7 million in dividend and bought back $165 million worth of common stocks.
Fiscal 2022 Operating Income Guidance Up
Logitech has raised its non-GAAP operating income view for fiscal 2022. The company now projects non-GAAP operating income between $800 million and $850 million compared with the previously-guided range of $750-$800 million.
However, the company reiterated its expectations for revenues. It still estimates sales to remain flat (+/- 5%) year over year in constant currency.
Other top-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) , Micron (MU - Free Report) and NVIDIA (NVDA - Free Report) . While Lam Research and Micron sport a Zacks Rank #1, NVIDIA carries a Zacks Rank #2 (Buy) at present.
The long-term earnings growth rate for Lam Research, Micron, and NVIDIA is currently pegged at 32.8%, 15.7% and 15.1%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Logitech (LOGI) Beats on Q4 Earnings, Raises FY22 Outlook
Logitech International (LOGI - Free Report) reported fourth-quarter fiscal 2021 results, wherein both bottom and top lines surpassed estimates. Non-GAAP earnings came in at $1.45 per share, surpassing the Zacks Consensus Estimate by 51%. The bottom line also improved from the year-ago quarter’s earnings of 42 cents per share.
Net sales of $1.54 billion outpaced the consensus mark of $1.16 billion, and surged 117% year over year in dollars and 108% at constant currency.
Logitech has been benefiting from elevated demand for its Video Collaboration tools, mainly driven by the surging 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 stay-at-home scenario.
Logitech International S.A. Price, Consensus and EPS Surprise
Logitech International S.A. price-consensus-eps-surprise-chart | Logitech International S.A. Quote
Segmental Details
Logitech’s Gaming segment sales soared 117% year over year to $323 million. Video Collaboration sales skyrocketed 248% year on year to $385.7 million. Revenues from PC Webcams were up a whopping 261% to $144.8 million, while Tablet and Other Accessories sales surged 268% to $117.1 million.
The Audio & Wearables segment sales jumped an astounding 100% year over year to $130.2 million. Revenues from Pointing Devices increased 31% year over year to $177.7 million. Keyboards & Combos sales grew 48% to $219.2 million.
Mobile Speakers’ sales increased 40% to $29.7 million. The Smart Home segment sales inched up 1% year over year to $8.4 million. However, the Other segment revenues fell 14% year on year to $0.08 million during the fiscal fourth quarter.
Margins & Operating Metrics
Non-GAAP gross profit jumped more than two folds to $716.3 million from the year-ago quarter’s figure of $282.4 million. Non-GAAP gross margin expanded 680 basis points (bps) from the prior-year quarter to 46.6%.
Non-GAAP operating expenses flared up 92.2% to $391.2 million. Nonetheless, as a percentage of revenues, non-GAAP operating expenses decreased to 25.5% from the year-ago quarter’s figure of 28.7%.
Non-GAAP operating income soared more than four-fold to $325.1 million from the $79 million reported in the year-ago quarter. Operating margin advanced 10.1 percentage points to 21.2%.
Liquidity and Shareholders’ Return
As of Mar 31, 2021, Logitech’s cash and cash equivalents were $1.75 billion compared with the $1.39 billion recorded in the previous quarter. Additionally, the company generated operating cash flow of $530.2 million during the fiscal fourth quarter. During fiscal 2021, the company generated $1.46 billion of cash flow from operating activities.
Concurrent with the fiscal fourth-quarter results, Logitech announced that its board of directors has increased the share-repurchase authorization limit to $1 billion from the $250 million authorized previously. Under the current authorization, the company has bought back $165 million worth of its common stocks. Therefore, the company has now $835 million remaining total authorization after the increase, which it required to complete through July 2023.
Additionally, Logitech’s board of directors has approved a proposal for fiscal 2021 dividend, which will be 10% higher than the dividend paid in fiscal 2020.
During the fourth quarter of fiscal 2021, the company repurchased shares worth $92.2 million. In fiscal 2021, it paid $146.7 million in dividend and bought back $165 million worth of common stocks.
Fiscal 2022 Operating Income Guidance Up
Logitech has raised its non-GAAP operating income view for fiscal 2022. The company now projects non-GAAP operating income between $800 million and $850 million compared with the previously-guided range of $750-$800 million.
However, the company reiterated its expectations for revenues. It still estimates sales to remain flat (+/- 5%) year over year in constant currency.
Zacks Rank and Stocks to Consider
Logitech currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other top-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) , Micron (MU - Free Report) and NVIDIA (NVDA - Free Report) . While Lam Research and Micron sport a Zacks Rank #1, NVIDIA carries a Zacks Rank #2 (Buy) at present.
The long-term earnings growth rate for Lam Research, Micron, and NVIDIA is currently pegged at 32.8%, 15.7% and 15.1%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>