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) Q3 Earnings & Revenues Top Estimates, Up Y/Y
Read MoreHide Full Article
Logitech International (LOGI - Free Report) reported third-quarter fiscal 2020 results, wherein both bottom and top lines surpassed estimates.
Non-GAAP earnings came in at 84 cents per share, surpassing the Zacks Consensus Estimate of 77 cents. The bottom line also improved from the year-ago quarter’s 79 cents.
Net sales of $903 million surpassed the consensus mark of $899 million and rose 4% year over year in dollars and 5% at constant currency. The year-over-year increase stemmed from strong growth in Gaming, Video Collaboration and PC peripheral segments.
Logitech International S.A. Price, Consensus and EPS Surprise
Logitech’s Gaming segment’s sales grew 15% year over year to $245.74 million.
Video Collaboration sales witnessed a 24% rally to $91.96 million.
Mobile Speakers’ sales, however, fell 3% to $92.97 million.
Audio & Wearables segment sales declined 17% year over year to reach $81.93 million. Smart Home segment sales fell 19% year over year to $15.79 million.
Logitech’s Creativity and Productivity business comprises four sub-business lines — Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories. Revenues from Pointing Devices, and Keyboards and Combos grew 4% and 8% year over year, respectively. However, revenues from PC Webcams, and Tablet and Other Accessories declined 3% and 13%, respectively.
The company did not report any revenues from the Other segment in the quarter.
Margins & Operating Metrics
Non-GAAP gross profit rose 3% year over year to $339.61 million. Non-GAAP gross margin, however, contracted 50 basis points (bps) from the year-ago quarter to 37.6%. The impact of tariffs remained an overhang on margins.
Non-GAAP operating expenses inched up 0.8% to $187.97 million.
Non-GAAP operating income climbed 5.9% to $151.65 million. Operating margin of 16.8% expanded 20 bps.
Liquidity
As of Dec 31, 2019, Logitech’s cash and cash equivalents were $656.05 million compared with $574.5 million in the previous quarter.
Additionally, the company generated operating cash flow of $181.12 million in the fiscal third quarter compared with $106.5 million in the prior quarter.
Guidance
Logitech reaffirmed view for fiscal 2020. The company expects non-GAAP operating income of $375-$385 million.
Revenue growth is anticipated in the mid to high-single-digit range at constant currency.
Long-term earnings growth rate for ManTech, SYNNEX and Silicon Motion is currently pegged at 8%, 12% and 7%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Logitech (LOGI) Q3 Earnings & Revenues Top Estimates, Up Y/Y
Logitech International (LOGI - Free Report) reported third-quarter fiscal 2020 results, wherein both bottom and top lines surpassed estimates.
Non-GAAP earnings came in at 84 cents per share, surpassing the Zacks Consensus Estimate of 77 cents. The bottom line also improved from the year-ago quarter’s 79 cents.
Net sales of $903 million surpassed the consensus mark of $899 million and rose 4% year over year in dollars and 5% at constant currency. The year-over-year increase stemmed from strong growth in Gaming, Video Collaboration and PC peripheral segments.
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 grew 15% year over year to $245.74 million.
Video Collaboration sales witnessed a 24% rally to $91.96 million.
Mobile Speakers’ sales, however, fell 3% to $92.97 million.
Audio & Wearables segment sales declined 17% year over year to reach $81.93 million. Smart Home segment sales fell 19% year over year to $15.79 million.
Logitech’s Creativity and Productivity business comprises four sub-business lines — Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories. Revenues from Pointing Devices, and Keyboards and Combos grew 4% and 8% year over year, respectively. However, revenues from PC Webcams, and Tablet and Other Accessories declined 3% and 13%, respectively.
The company did not report any revenues from the Other segment in the quarter.
Margins & Operating Metrics
Non-GAAP gross profit rose 3% year over year to $339.61 million. Non-GAAP gross margin, however, contracted 50 basis points (bps) from the year-ago quarter to 37.6%. The impact of tariffs remained an overhang on margins.
Non-GAAP operating expenses inched up 0.8% to $187.97 million.
Non-GAAP operating income climbed 5.9% to $151.65 million. Operating margin of 16.8% expanded 20 bps.
Liquidity
As of Dec 31, 2019, Logitech’s cash and cash equivalents were $656.05 million compared with $574.5 million in the previous quarter.
Additionally, the company generated operating cash flow of $181.12 million in the fiscal third quarter compared with $106.5 million in the prior quarter.
Guidance
Logitech reaffirmed view for fiscal 2020. The company expects non-GAAP operating income of $375-$385 million.
Revenue growth is anticipated in the mid to high-single-digit range at constant currency.
Zacks Rank & Key Picks
The company currently has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader technology sector are ManTech International Corporation , SYNNEX (SNX - Free Report) and Silicon Motion Technology Corporation (SIMO - Free Report) , all 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 ManTech, SYNNEX and Silicon Motion is currently pegged at 8%, 12% and 7%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>