Logitech International (NASDAQ:LOGI) Announces Earnings Results

Logitech International (NASDAQ:LOGI) posted its quarterly earnings results on Tuesday. The technology company reported $1.93 EPS for the quarter, topping the consensus estimate of $1.78 by $0.15, FiscalAI reports. The company had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $1.40 billion. Logitech International had a net margin of 14.11% and a return on equity of 32.22%. The firm’s revenue was up 6.1% compared to the same quarter last year. During the same quarter last year, the firm posted $1.59 EPS.

Here are the key takeaways from Logitech International’s conference call:

• Logitech delivered record non-GAAP operating income ($312M, +17% YoY) and EPS, with net sales of $1.4B (+4% constant currency) and exceptional operating cash flow of ~ $500M, leaving cash of $1.8B.
• The company sustained a strong non-GAAP gross margin of 43.5% (up 30 bps) by combining product cost reductions, targeted pricing and FX, while reducing U.S.-bound manufacturing sourced from China from 40% to <10%.
• Product momentum is robust: the MX Master 4 set a company record for first-month unit sales, and Logitech is shipping AI-enabled products at scale (Rally Board 65, Sight camera, Zone Wireless 2) and announced Rally AI Camera/Pro for large rooms.
• B2B demand outpaced B2C, with video collaboration net sales up 8% and strong traction in the education vertical, signaling continued enterprise momentum despite the business’s quarter-to-quarter lumpiness.
• Gaming was mixed: global gaming sales rose 2% driven by double-digit growth in China, but Americas and EMEA declined single digits, leaving near-term gaming growth uneven despite new product wins (PRO X SUPERLIGHT 2, G316).

Logitech International Stock Down 0.4%

LOGI stock traded down $0.42 during midday trading on Tuesday, hitting $93.74. 2,330,593 shares of the stock traded hands, compared to its average volume of 1,061,514. The stock’s fifty day simple moving average is $105.01 and its 200-day simple moving average is $105.81. Logitech International has a 1-year low of $64.73 and a 1-year high of $123.01.

Insider Buying and Selling at Logitech International

In other Logitech International news, Director Neela Montgomery sold 5,833 shares of the stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $120.61, for a total transaction of $703,518.13. Following the transaction, the director owned 12,781 shares in the company, valued at approximately $1,541,516.41. This represents a 31.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.19% of the stock is currently owned by corporate insiders.

Institutional Trading of Logitech International

A number of institutional investors have recently made changes to their positions in the company. Quarry LP acquired a new stake in shares of Logitech International in the third quarter valued at about $30,000. Northwestern Mutual Wealth Management Co. grew its stake in Logitech International by 40.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 576 shares of the technology company’s stock valued at $52,000 after acquiring an additional 165 shares in the last quarter. New Vernon Capital Holdings II LLC acquired a new stake in Logitech International in the 3rd quarter valued at about $138,000. EverSource Wealth Advisors LLC raised its holdings in Logitech International by 13.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,779 shares of the technology company’s stock valued at $160,000 after acquiring an additional 206 shares during the last quarter. Finally, Integrated Wealth Concepts LLC acquired a new position in shares of Logitech International during the 3rd quarter worth approximately $203,000. 45.76% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. BNP Paribas Exane downgraded Logitech International from an “outperform” rating to a “neutral” rating and set a $106.00 price objective for the company. in a report on Thursday, January 8th. Barclays reaffirmed an “equal weight” rating and issued a $98.00 price target (down previously from $134.00) on shares of Logitech International in a research report on Friday, January 16th. JPMorgan Chase & Co. lifted their price objective on shares of Logitech International from $104.00 to $123.00 and gave the company a “neutral” rating in a report on Wednesday, October 29th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Logitech International in a report on Thursday, January 22nd. Finally, Wedbush reaffirmed an “outperform” rating and set a $135.00 price target on shares of Logitech International in a research report on Tuesday, January 20th. Five research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $102.13.

About Logitech International

Logitech International SA is a Swiss-headquartered company that designs, manufactures and markets a wide range of computer peripherals and accessories for consumers, gamers and business customers. Founded in 1981, the company develops hardware and complementary software that enable people to interact with digital devices across work, home and entertainment settings. Logitech maintains corporate offices in Switzerland and significant operations in the United States and other regions worldwide.

The company’s product portfolio includes mice, keyboards, webcams, headsets, microphones, speakers, remote controls and other input/output devices, along with specialized lines for gaming, streaming and video collaboration.