I’ve written about Logitech (NASDAQ:LOGI) in the past where I described it in a prime position to take advantage of the short-term tailwinds due to the coronavirus crisis. The short-term thesis was pretty straight forward, Logitech could be a prime beneficiary of people buying computer-related peripherals as they are stuck at home due to the coronavirus pandemic. These peripherals include both gaming and home-office peripherals. The stock has risen 91.9% since my recommendation as this thesis played out. The next step we need to determine now is “where do we go from here?”
Logitech had a blockbuster fiscal Q2 2021 (ended September 2020). The company’s revenue for Q2 2020 was $1.26 billion up 75% year over year. This was a milestone for the company as it was the first time its quarterly sales hit more than a billion. These results were so good that the company increased its annual outlook from 10-13% sales growth to 35-40% sales growth for this fiscal 2021.
"Our growth and profitability accelerated again this quarter, and we are raising our annual outlook,” said Bracken Darrell, Logitech president, and chief executive officer. “The growth trends that drive our business have accelerated as society adjusts to its new reality. The organization leaders I speak to envision people increasingly working from multiple locations, a hybrid work culture that is emerging as the norm. And at home, the rise of gaming as a spectator and participant sport continues with no end in sight. Our products are essential to helping customers work, play, and create wherever they are. Logitech is well-positioned for long-term growth.”
Logitech press release - emphasis by author
The company’s operating income grew a whopping 372% to $322 million year over year. Earnings per share grew 263 percent to $1.56 compared to $0.43 the same quarter last year. As you may know because
