U.S. markets closed
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • Dow 30

    30,932.37
    -469.64 (-1.50%)
     
  • Nasdaq

    13,192.35
    +72.92 (+0.56%)
     
  • Russell 2000

    2,201.05
    +0.88 (+0.04%)
     
  • Crude Oil

    61.66
    -1.87 (-2.94%)
     
  • Gold

    1,733.00
    -42.40 (-2.39%)
     
  • Silver

    26.70
    -0.98 (-3.56%)
     
  • EUR/USD

    1.2088
    -0.0099 (-0.81%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • GBP/USD

    1.3922
    -0.0091 (-0.65%)
     
  • USD/JPY

    106.5500
    +0.3200 (+0.30%)
     
  • BTC-USD

    43,561.30
    -3,312.03 (-7.07%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

Logitech Lifts FY21 Outlook After 3Q Beat; Street Is Bullish

  • Oops!
    Something went wrong.
    Please try again later.
support@smarteranalyst.com (Ben Mahaney)
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

Logitech International reported better-than-expected 3Q results. Furthermore, the software and computer peripherals manufacturer raised its 2021 forecast for sales and operating income citing increased demand for its products amid the coronavirus pandemic.

Logitech’s (LOGI) 3Q earnings of $2.45 per share soared 192% year-over-year and topped the Street consensus of $1.01 per share. Sales jumped 85% to $1.67 billion year-over-year and exceeded analysts' estimates of $1.25 billion. The company’s adjusted operating income more than doubled to $476 million.

Logitech’s CEO Bracken Darrell said, “This quarter’s record results demonstrate the strength of our portfolio, addressing long-term growth trends in remote work and education, video collaboration, esports, and digital content creation.”

Logitech now expects fiscal 2021 sales growth in the range of 57% to 60% on a constant currency basis, up from the earlier guidance range of 35% to 40%. The company projects its adjusted operating income to be about $1.05 billion, compared to the earlier forecast of $700 million to $725 million. (See LOGI stock analysis on TipRanks).

On Jan. 12, Wedbush analyst Michael Pachter said, “Global quarantines drove accelerated growth in various priority focus categories for Logitech, including video communication, esports/gaming, and streaming/podcasting.”

The analyst expects "Q3:21 results to show continued momentum, further also expanding Logitech’s recurring user base.” For now, Pachter maintained a Hold rating and a price target of $95 (5.9% downside potential) saying “shares are trading near our target.”.

Overall, the rest of the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 9 Buys and 3 Holds. The average analyst price target of $102.46 implies upside potential of about only 1.54% to current levels. That's after shares rallied of 115.3% over the past year.

Related News:
Turquoise Hill Expects Higher Gold Production In 2021
Vermilion Energy Lowers 2021 Exploration Budget To $300M
€16.2B Merger Between Carrefour and Couche-Tard Blocked By French Government

More recent articles from Smarter Analyst: