May 24, 2024


Unlimited Technology

Logitech (LOGI) Q1 Earnings Top Estimates, FY21 View Raised

Logitech International LOGI reported first-quarter fiscal 2021 results, wherein both bottom and top lines surpassed estimates.

Non-GAAP earnings came in at 64 cents per share, surpassing the Zacks Consensus Estimate by 77.8%. The bottom line also improved from the year-ago quarter’s 39 cents.

Net sales of $792 million surpassed the consensus mark of $706 million and rose 23% year over year in dollars and 25% at constant currency.

The year-over-year increase stemmed from strong growth across all business segments. Bracken Darrell, president and CEO, Logitech, noted, “Our company strategy focuses on four long-term trends: more of us will work from home; video calls will replace audio calls; esports will become as big as conventional sports; and billions of people worldwide will create content, not just a handful of TV and movie studios. Logitech’s business was already positioned to grow from these long-term trends, and since early March they have accelerated, making Logitech more relevant to customers than ever before.”

Logitech International S.A. Price, Consensus and EPS Surprise

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 35% year over year to $181.9 million. Video Collaboration sales witnessed a 77% rally to $130.1 million. Audio & Wearables segment sales grew 22% year over year to $71.4 million.

However, Mobile Speakers’ sales fell 42% to $29 million. Smart Home segment sales declined 31% year over year to $6.8 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 fell 1% year over year, whereas that from Keyboards and Combos grew 13%. Revenues from PC Webcams, and Tablet and Other Accessories rose 116% and 20%, respectively.

The Other segment declined 98% to $5 million in the quarter.

Margins & Operating Metrics

Non-GAAP gross profit rose 27.6% year over year to $310.7 million. Non-GAAP gross margin expanded 140 basis points (bps) from the year-ago quarter to 39.2%.

Non-GAAP operating expenses grew 9.6% to $193.3 million.

Non-GAAP operating income soared 75.1% to $117.3 million. Operating margin of 14.8% expanded 440 bps.


As of Jun 30, 2020, Logitech’s cash and cash equivalents were $809.4 million compared with $715.6 million in the previous quarter.

Additionally, the company generated operating cash flow of $118.8 million in the fiscal first quarter compared with $100.8 million in the prior quarter.


Logitech raised its view for fiscal 2021. The company now expects non-GAAP operating income of $410-$425 million compared with the previously guided range of $380-$400 million.

Revenue growth is now anticipated to be 10-13% year over year, instead of a mid-single-digit range, at constant currency.

Zacks Rank and Stocks to Consider

Logitech currently has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader technology sector are Micron Technology MU, Dropbox, Inc. DBX and Asure Software Inc ASUR. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Micron, Dropbox and Asure is currently pegged at 10.26%, 32.51% and 14%, respectively.

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