Logitech (LOGI) Q4 Earnings Top, FY18 Sales Touch Record High
Zacks Investment Research | May 02, 2018 09:26PM ET
Logitech International SA (NASDAQ:LOGI) maintained its impressive streak of earnings beats for the 10th consecutive quarter. On an adjusted basis, the company’s fourth-quarter fiscal 2018 earnings came in at 32 cents per share, surpassing the Zacks Consensus Estimate of 26 cents. Earnings also marked improvement of 2 cents from the year-ago quarter’s figure of 30 cents.
Inside the Headlines
Net sales for the quarter rose 16% year over year to $592.4 million, comfortably beating the Zacks Consensus Estimate of $564 million. Revenue growth stemmed from solid performance in Logitech’s Video Collaboration, Gaming businesses, and Tablet & Accessories, partially offset by a lackluster Mobile Speakers business. Moreover, the company’s ASTRO acquisition continues to be conducive to its overall performance.
Creativity and Productivity business comprises four sub-business lines — Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories. All of these registered remarkable year-over-year improvement, which, we believe, is mainly due to a stabilizing PC market.
Gaming surged 77% year over year to $127 million, supported by strong momentum across its latest products. Meanwhile, Video Collaboration grew 41% to $55 million. In addition, smart home category witnessed marginal sales growth of 2% to $16 million.
However, the Music business, which comprises Mobile Speakers units and Audio-PC & Wearables, put up a disappointing show. Audio PC & Wearables sales declined 8% to $55 million, while Mobile Speaker segment sales plunged 65% to $14 million.
Non-GAAP operating margin contracted 60 basis points year over year to 9.3%, while non-GAAP operating income climbed 9.2% year over year to $55.1 million.
Logitech International S.A. Price, Consensus and EPS Surprise
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