Logitech blasts off to 3-year highs on FQ3 beat, strong guidance

|About: Logitech International S.A. (LOGI)|By:, SA News Editor

Logitech (LOGI +21%) is at levels last seen in early 2011 after blowing away FQ3 estimates and upping its FY14 (ends March '14) guidance. The peripherals maker now expects FY14 revenue of $2.1B (above a $2.06B consensus) and op. income of $120M-$125M, up from prior guidance of $2B and $100M-$125M.

Logitech's numbers highlight its success at lowering its dependence on slumping PC and home electronics peripherals markets. While the company's pointing device (mice), PC keyboard/desktop, video (webcams/videoconferencing), PC audio, and Harmony remote segments respectively saw sales declines of 8%, 2%, 9%, 12%, and 13%, sales to the audio wearables/wireless and tablet & other segments rose 79% and 95%. PC gaming was also an area of strength, rising 25%.

Strong demand for Logitech's Ultrathin iPad keyboard covers continues to boost its tablet accessories sales, and surging shipments of UE Boom wireless speakers are lifting audio sales.

Also helping Logitech's bottom line: Thanks to job cuts, opex fell 11% Y/Y to $160M, even as revenue rose 2%.

SA contributor Ashraf Eassa highlighted Logitech's turnaround efforts and tablet/PC gaming opportunities in an August column.

FQ3 slides, prepared remarks