We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Logitech (LOGI) Q1 Earnings & Revenues Top Estimates, Up Y/Y
Read MoreHide Full Article
Logitech International (LOGI - Free Report) reported solid first-quarter fiscal 2020 results, wherein both the top line and the bottom line surpassed estimates and improved year over year.
Non-GAAP earnings came in at 39 cents per share, surpassing the Zacks Consensus Estimate of 35 cents. The bottom line also improved from the year-ago quarter figure of 34 cents.
Net sales of $644 million beat the consensus estimate of $638 million, and rose 6% year over year in dollars and 9% in constant currency. Revenue growth stemmed from consistent strength in Video Collaboration and Mobile Speakers, and a solid product portfolio.
Logitech International S.A. Price, Consensus and EPS Surprise
Logitech’s Gaming segment’s sales slipped 1% year over year to $134.5 million. Video Collaboration jumped 25% to $73.4 million.
Mobile Speakers business’ sales surged 47% to $50.4 million and Audio & Wearables segment witnessed 12% year-over-year growth.
Moreover, Smart Home segment witnessed growth after putting up a disappointing show in the previous quarter. Sales grew 9% to $9.9 million.
Logitech’s Creativity and Productivity business comprises four sub-business lines — Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories. Keyboards & Combos revenues increased slightly (0.4%) year over year, and Tablet & Other Accessories jumped 18%. However, Pointing Devices and PC Webcams dived 5% each.
Notably, the Other segment, products of which the company is currently in the process of transitioning out of, registered a whopping 427% surge in the reported quarter.
Margins & Operating Metrics
Non-GAAP gross profit rose 7% year over year to $243.4 million. Non-GAAP gross margin increased 40 basis points (bps) to 37.8%.
Non-GAAP operating expenses jumped 5.7% to $176.4 million.
Non-GAAP operating income climbed 10.7% to $67 million. Operating margin of 10.4% expanded 50 bps from the year-ago quarter.
Liquidity
As of Jun 30, 2019, Logitech’s cash and cash equivalents were $597 million compared with $604.5 million in the previous quarter.
Additionally, the company generated operating cash flow of $36.5 million in the fiscal first quarter compared with $31.7 million in the prior quarter.
Guidance
Logitech reaffirmed view for fiscal 2020. The company expects the non-GAAP operating income to be $375-$385 million.
Revenue growth is anticipated within mid-high single digits in constant currency.
Long-term earnings growth rate for Keysight, Nikon and Alibaba is projected to be 10%, 1% and 26.83%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
Logitech (LOGI) Q1 Earnings & Revenues Top Estimates, Up Y/Y
Logitech International (LOGI - Free Report) reported solid first-quarter fiscal 2020 results, wherein both the top line and the bottom line surpassed estimates and improved year over year.
Non-GAAP earnings came in at 39 cents per share, surpassing the Zacks Consensus Estimate of 35 cents. The bottom line also improved from the year-ago quarter figure of 34 cents.
Net sales of $644 million beat the consensus estimate of $638 million, and rose 6% year over year in dollars and 9% in constant currency. Revenue growth stemmed from consistent strength in Video Collaboration and Mobile Speakers, and a solid product portfolio.
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’s sales slipped 1% year over year to $134.5 million. Video Collaboration jumped 25% to $73.4 million.
Mobile Speakers business’ sales surged 47% to $50.4 million and Audio & Wearables segment witnessed 12% year-over-year growth.
Moreover, Smart Home segment witnessed growth after putting up a disappointing show in the previous quarter. Sales grew 9% to $9.9 million.
Logitech’s Creativity and Productivity business comprises four sub-business lines — Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories. Keyboards & Combos revenues increased slightly (0.4%) year over year, and Tablet & Other Accessories jumped 18%. However, Pointing Devices and PC Webcams dived 5% each.
Notably, the Other segment, products of which the company is currently in the process of transitioning out of, registered a whopping 427% surge in the reported quarter.
Margins & Operating Metrics
Non-GAAP gross profit rose 7% year over year to $243.4 million. Non-GAAP gross margin increased 40 basis points (bps) to 37.8%.
Non-GAAP operating expenses jumped 5.7% to $176.4 million.
Non-GAAP operating income climbed 10.7% to $67 million. Operating margin of 10.4% expanded 50 bps from the year-ago quarter.
Liquidity
As of Jun 30, 2019, Logitech’s cash and cash equivalents were $597 million compared with $604.5 million in the previous quarter.
Additionally, the company generated operating cash flow of $36.5 million in the fiscal first quarter compared with $31.7 million in the prior quarter.
Guidance
Logitech reaffirmed view for fiscal 2020. The company expects the non-GAAP operating income to be $375-$385 million.
Revenue growth is anticipated within mid-high single digits in constant currency.
Zacks Rank and Key Picks
Logitech currently has a Zacks Rank #3 (Hold).
A few top-ranked stocks in the broader Computer and Technology sector are Keysight Technologies Inc. (KEYS - Free Report) , Nikon Corp. (NINOY - Free Report) , and Alibaba Group Holding Limited (BABA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Keysight, Nikon and Alibaba is projected to be 10%, 1% and 26.83%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>