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%.
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.