PC and mobile device peripherals maker Logitech International (LOGI) smashed Wall Street’s targets for the March quarter on strong sales of webcams and other accessories. But Logitech stock fell on Thursday.
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Logitech earned an adjusted $1.45 a share on sales of $1.54 billion in its fiscal fourth quarter ended March 31. Analysts were expecting Logitech earnings of 83 cents a share on sales of $1.1 billion. On a year-over-year basis, Logitech earnings jumped 245% while sales increased 117%.
“The trends that fueled our growth pre-pandemic — work from anywhere, video everywhere, esports and the democratization of content creation — all accelerated,” Chief Financial Officer Nate Olmstead said in a news release late Wednesday. “As our market opportunities have expanded, and we have become a larger, more profitable company, we’re investing in our capabilities to accelerate our innovation, reach new customers and deliver strong financial returns over the long-term.”
The work-from-home and school-at-home trends spurred by the Covid-19 pandemic have fueled Logitech’s growth over the past year.
Logitech Stock Wavers On Earnings News
Logitech stock surged higher in premarket trading. But during the regular session Thursday, it fell. Logitech stock ended the regular session down 2.7% to 109.14.
On April 13, Logitech stock broke out of a cup-with-handle base at a buy point of 109.73, according to IBD MarketSmith charts. Logitech stock ended Wednesday’s regular session in the 5% chase zone of its breakout, which extends to 115.22.
The company is starting to lap year-ago gains from the coronavirus pandemic, Chief Executive Bracken Darrell told IBD. “This was our first quarter of tougher comps and it goes up from here,” he said.
However, Logitech raised its outlook for adjusted operating income for fiscal 2022 to between $800 million and $850 million. Previously it guided to between $750 million and $800 million. It still expects its sales growth in constant currency for the year to be flat, plus or minus 5%.
The Lausanne, Switzerland-based company also increased its share buyback authorization to $1 billion. That expands Logitech’s current $250 million, three-year share buyback authorization. To date, Logitech has repurchased $165 million of shares in the current program. Logitech also plans to increase its annual dividend by about 10%.
PC Webcam Sales Surge 261%
Sales of tablet accessories, such as keyboards, rocketed 268% to $117.1 million in the March quarter. PC webcam sales surged 261% to $144.8 million. Video collaboration devices raked in $385.7 million, up 248% from the year-earlier period.
Other categories showing white-hot growth included gaming and audio and wearables. Sales of video game peripherals jumped 117% year over year to $323 million. The audio and wearables segment posted 100% growth to $130.2 million.
Logitech stock is on IBD’s Global Leaders watchlist.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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