Logitech (LOGI) Rallies on First Quarter Results, Improved Forecast
Shares of Logitech International (LOGI) were up +1.81 or +13.58 percent to $15.14 in pre-market trading this morning, after the company released better than expected results for the company's first quarter 2015. The company also raised its profitability outlook for the rest of its 2015 fiscal year. Logitech stock closed unchanged at $13.33 per share in Wednesday's regular trading session.
Logitech reported a net profit for the quarter ended June 30th of $22 million or $0.23 per share, versus $1 million, or $0.01 per share in the same period one year ago. The analyst consensus was for the company to have made a net profit of $7.5 million, or $0.08 per share.
First quarter sales were up +1.3 percent over the prior year, to $484 million with retail sales up three percent. Non-GAAP operating income was $44 million with non-GAAP earnings per share of $0.23 per share, versus $0.07 one year ago, while cash flow from operations was around $28 million. The company has reduced its product line and is now manufacturing more products tailored to tablets, such as detachable keyboards, and other devices for use with mobile phones.
Bracken Darrell, Logitech President and Chief Executive Officer said in a press release, "We have started the new fiscal year with a strong Q1 performance, delivering sales growth, year-over-year improvement in profitability and improved cash generation, Q1 sales in our Growth category - which includes PC Gaming, Tablet and Other Accessories, and Mobile Speakers - were up 17 percent, with Mobile Speakers sales more than doubling over last year. As planned, our cost reduction actions continue to drive increased operating leverage. As we proceed through Fiscal Year 2015, we will continue to focus both on accelerating sales growth and on achieving our improved outlook for profitability.
Logitech also confirmed its outlook of $2.16 billion in sales for 2015, and raised its outlook for non-GAAP operating income to approximately $170 million from $145 million. Due to an accounting issue, the filing for annual results for the year ended March 31st, 2014 has been delayed and is currently under investigation. Also, the U.S. Securities and Exchange Commission is investigating some of the company's financial statements issued last year.
Logitech stock has been steadily climbing since trading below $7.00 per share one year ago. The stock has risen to as high as $16.86 per share in early March and with continued results beating expectations, the stock could soon test its highs.
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