Can Logitech Really Grow?
Logitech: Not Just PCs, But It Still Looks Expensive
Can Logitech Really Grow?
Tue, Feb. 2, 9:37 AM
- Morgan Stanley has downgraded Logitech (NASDAQ:LOGI) to Underweight. The call comes less than two weeks after the peripherals/accessories maker jumped in the wake of mixed FQ3 results and an FY16 guidance hike.
- Separately, CEO Bracken Darrell states in an interview Logitech is looking to enter the virtual reality peripherals market - Logitech plans to make controllers that work with VR headsets much the same way mice/keyboards work with PCs.
- The comments come with Facebook set to begin shipping its first commercial Oculus Rift model in March; its Oculus Touch handheld motion controllers are due later this year. Meanwhile, the FT recently reported Apple has created a large VR/AR team and built headset prototypes.
Oct. 22, 2015, 3:20 PM
- With an FQ2 beat in tow, Logitech (NASDAQ:LOGI) is reiterating FY16 (ends March '16) guidance for 7% constant currency retail sales growth and $150M in op. income in spite of weak PC and tablet markets.
- Mobile speaker sales were again a strong point in FQ2, rising 66% Y/Y to $80.6M. Gaming (+42% to $67.6M) and videoconferencing (+45% to $20.1M) were also standouts. PC/wearable audio was weak (-19% to $46.3M), as was tablets & other accessories (-34% to $18.5M) and home control (remotes, -33% to $12.6M).
- Gross margin fell 420 bps Y/Y to 34.6%. However, job cuts led operating expenses drop 1% to $145.2M. $40M was spent on buybacks.
- FQ2 results, PR
Jul. 23, 2015, 9:38 AM
- In spite of weak PC/tablet markets and a strong Swiss franc, Logitech (NASDAQ:LOGI) is maintaining FY16 (ends March '16) op. income guidance of $150M. Guidance for 7% constant currency retail sales growth is also reiterated; the revenue growth consensus (in actual dollars) is -2.3%.
- Product line performance: Mobile speakers and video collaboration (videoconferencing) were once more strong points: Sales respectively rose 41% and 39% Y/Y to $40.5M and $21.2M. Tablet & other accessories were soft, falling 41% to $18.8M. Gaming -7% to $43.7M; pointing devices +3% to $117M; keyboards/combos roughly flat at $105.8M; PC/wearables audio -6% to $45.7M, PC webcams +6% to $21.7M; home control (remotes) -17% to $10.3M.
- Financials: Gross margin (non-GAAP) fell 120 bps Y/Y to 36.7%. Operating expenses were nearly flat at $141.4M. Logitech ended FQ1 with $492.3M in cash (equal to roughly 1/5 of its market cap), and no debt.
- FQ1 results, PR
Apr. 23, 2015, 2:11 PM
- Logitech (NASDAQ:LOGI) is close to a 52-week high of $15.52 after beating FQ4 EPS estimates (while posting in-line revenue) in spite of the PC industry's woes. The peripherals giant has reiterated the FY16 (ends March '16) guidance it provided a month ago.
- Forex had a 3% impact on Y/Y sales growth. Mobile speaker sales (fueled by the UE Boom speaker line) were once more a strong point, rising 98.2% to $38.4M. Also: Video collaboration sales (new products were launched in January) rose 140.3% to $16.2M, and tablet & other accessories (inc. tablet keyboards) rose 17.1% to $26M.
- PC products were soft: Pointing devices -12.6% to $104.7M, keyboards & combos -2.5% to $100.9M; PC/wearables audio -14.2% to $51M, PC webcams -25.2% to $19.2M. Also, home control products (e.g. remotes) fell 11.8% to $11.8M.
- Lifting EPS: Gross margin rose 50 bps Y/Y to 33.7%. Also, non-GAAP operating expenses only rose 2% Y/Y to $143.2M. Logitech ended Q1 with $537M in cash, and no debt.
- Q1 results, PR, prepared remarks (.pdf), slides (.pdf)
Mar. 24, 2015, 3:18 PM
- Today's notable tech gainers include chip packaging/testing firm ChipMOS (IMOS +3.7%), and headphone maker Skullcandy (SKUL +3.9%), mobile banking tech provider Mitek (MITK +6.5%), search toolbar/mobile ad platform provider Perion (PERI +8.8%), Chinese social network/game provider Renren (RENN +4.8%), peripherals giant Logitech (LOGI +4%), security IP licensing firm Finjan (FNJN +13.7%).
- Notable decliners include e-commerce services firm ChannelAdvisor (ECOM -5.6%), program guide/content protection IP firm Rovi (ROVI -4.3%), telecom equipment vendor Calix (CALX -3.5%), and Fibre Channel/Ehternet switch vendor Brocade (BRCD -3.4%).
- Likely helping Finjan: An H.C. Wainwright note stating the company has committed $5M to a Jerusalem Venture Partners (JVP) cybersecurity fund; Alibaba announced yesterday it's investing in JVP. Logitech announced a $100 wireless mouse today. Skullcandy is once more within striking distance of a 52-week high of $11.83.
- Previously covered: Twitter, solar stocks, Sonus/AudioCodes/BroadSoft, Neonode, Arista, Taser, Ciena, Zagg, Gogo, Digital Ally
Mar. 12, 2015, 10:36 AM
- JPMorgan has downgraded Logitech (LOGI -2.6%) to Underweight a day after the company provided light 2016 guidance (partly blamed on forex) at its 2015 analyst day. The firm's target has been cut by $2 to $13.
- Shares are now down 7% over the last two days. They're $1.30 above a 52-week low of $11.20.
Mar. 11, 2015, 11:13 AM
- Logitech (LOGI -2.4%) uses its 2015 analyst day to reiterate guidance for 2015 revenue of $2.11B (in-line with consensus) and op. income of $185M. The company has also guided for 2016 revenue of $2.15B (slightly below a $2.16B consensus) and op. income of $150M.
- The PC/mobile/living room peripherals maker notes a strong dollar "will have a significant impact on our financial results moving forward," and that it's taking steps to deal with the issue, including "pricing adjustments and the further reduction of our global cost structure."
- Logitech promises to return $500M to shareholders over the next 3 years - $250M via dividends, and $250M through an existing buyback program. The board plans to request shareholder approval for $85M worth of 2015 dividend payments at this year's annual meeting.
- Logitech's analyst day slides
Mar. 6, 2015, 2:54 PM
- With the Nasdaq down 1.1%, major tech decliners are outpacing major gainers by a sound margin.
- Notable gainers include gaming headset maker Turtle Beach (HEAR +6.8%), Chinese data center owner 21Vianet (VNET +3.6%), wireless charging tech developer Energous (WATT +2.7%), Chinese online retailer LightInTheBox (LITB +5.6%), and solar microinverter maker Enphase (ENPH +5.9%).
- Notable decliners include ultracapacitor maker Maxwell (MXWL -6.6%), healthcare IT giant Cerner (CERN -3.8%), enterprise storage hardware vendor Quantum (QTM -6%), cloud SMB marketing software vendor Constant Contact (CTCT -4.6%), 3D measurement/imaging system maker FARO Technologies (FARO -5.4%), PC/mobile peripherals giant Logitech (LOGI -4.6%), and cloud security/compliance software vendor Qualys (QLYS -4.2%).
- Energous is up 12% over the last two trading days; its Q4 report arrives on Monday afternoon. Maxwell was up sharply yesterday on an insider buy. Cerner closed yesterday near an all-time high of $73.24.
- Previously covered: YY, Finisar/JDS Uniphase, Violin Memory, Crossroads, Skullcandy, Neustar, Synacor, CyberArk, Autohome/Bitauto, Wave Systems
Jan. 22, 2015, 12:44 PM
- A strong dollar has led Logitech (NASDAQ:LOGI) to cut its FY15 (ends March '15) revenue guidance to $2.11B (below a $2.13B consensus) from $2.16B. However, op. income guidance has still been hiked by $15M to $185M.
- Gross margin rose 240 bps Y/Y in seasonally huge FQ3 to 36.5%, aiding Logitech's EPS beat. GAAP opex rose a modest 3% to $166.6M.
- Segment performance: PC gaming revenue +21% Y/Y to $70.2M. Tablets/other accessories -18% to $55.1M. Mobile speakers +86% to $62.3M (driven by UE Boom speaker sales). Pointing devices nearly flat at $141.8M. PC keyboards/desktops +5% to $114.1M. Audio (PC & wearables) -15% to $58.7M. Video +22% to $46.7M. Remotes -4% to $25.2M.
- On a sell-through basis, Americas sales were up 11% in constant currency,, Asia-Pac sales up 7%, and EMEA sales down 2% (down 9% in dollars).
- FQ3 results, PR, earnings slides (.pdf)
Jan. 22, 2015, 9:15 AM
Jan. 15, 2015, 10:31 AM
- Like other Swiss ADRs, Logitech's (NASDAQ:LOGI) U.S. shares have risen in response to the Swiss National Bank's decision to give up its efforts to halt the franc's rise (by maintaining a 1.2/1 floor against the euro). Over in Zurich, shares are down 10%.
- The PC/mobile peripherals maker reports earnings at 10PM ET on Jan. 21. Yesterday, its Lifesize videoconferencing hardware unit unveiled two new systems (the Icon 400 and Icon Flex), as well as an update for its Lifesize Cloud videoconferencing app.
Oct. 23, 2014, 2:50 PM
- Logitech (NASDAQ:LOGI) is reiterating FY15 (ends March '15) revenue guidance of $2.16B; consensus is at $2.15B.
- The Q3 beat was fueled by a 143% Y/Y increase in mobile speaker sales to $48.5M. A 41% increase in remote sales to $18.8M also helped.
- Other segments: Tablets/other accessories (inc. iPad cases) -19% to $28.2M; pointing devices -2% to $127.7M; PC keyboards/desktops nearly flat at $105.7M; PC/wearables audio -17% to $58.7M; video +3% to $37.6M.
- Gross margin rose 270 bps Y/Y to 38.8%. Job cuts allowed opex to fall 5% to $147.2M.
- FQ2 results, PR
Jul. 24, 2014, 12:50 PM
Jul. 24, 2014, 9:18 AM
May 12, 2014, 9:12 AM
May 12, 2014, 9:05 AM
- Credit Suisse has upgraded Logitech (LOGI) to Outperform. The firm considers the peripherals vendor attractively priced following a selloff that has left shares trading at 12.8 2016E GAAP EPS, and sporting a 7.9% estimated 2016 free cash flow yield.
- Shares more than doubled from July to January, aided by investor enthusiasm for soaring iPad keyboard cover and wireless speaker sales. But they've sold off over the last two months, thanks in part to the ho-hum full-year guidance provided with Logitech's Q1 beat.
Logitech International SA engages in the peripherals businesses. It develop and market innovative hardware and software products that enable or enhance digital navigation, music and video entertainment, gaming, social networking, and audio and video communication over the Internet and... More
Industry: Computer Peripherals
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