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Logitech (NASDAQ:)’s Q2 fiscal 2024 non-GAAP earnings have risen to $1.09 per share, reflecting a 30% year-on-year (YoY) increase and surpassing the Zacks Consensus Estimate. This growth comes despite an 8% YoY decline in revenue to $1.06 billion. The company’s profits have exceeded pre-pandemic levels, largely attributed to improved component costs and reduced operating expenses. According to InvestingPro data, Logitech’s adjusted market cap stands at $12.02 billion, with a P/E ratio of 37.41.
During the pandemic, there was a surge in demand for Logitech’s products including video collaboration tools, keyboards & combos, pointing devices, and gaming products. Sales for Pointing Devices, Tablet Accessories, and Keyboards and combos stood at $192 million, $64 million, and $195 million respectively.
Further financial data reveals that the non-GAAP gross margin expanded to 42%, and the non-GAAP operating income rose to $183 million. As of September 30, 2023, Logitech held cash and cash equivalents of $1.16 billion. In addition, the company repurchased shares worth $94 million and paid dividends of $182.3 million during this period. InvestingPro Tips highlights that Logitech has a history of aggressive share buybacks and has raised its dividend for 10 consecutive years, which aligns with the company’s recent activities.
Looking ahead, Logitech forecasts fiscal 2024 revenues between $4.0-$4.15 billion and non-GAAP operating income between $525-$575 million. The company currently holds a Zacks Rank #1 (Strong Buy), with a year-to-date share price growth of 9.8%. However, InvestingPro data shows a more comprehensive picture, with a 1-year price total return of 52.41% and a 6-month price total return of 21.13%.
InvestingPro Tips also suggests that despite the company’s strong performance, there are concerns about a declining trend in earnings per share and analysts anticipate a sales decline in the current year. Yet, the company’s liquid assets exceed its short-term obligations, and it holds more cash than debt on its balance sheet, indicating a healthy financial state.
For more insights like these, consider exploring the InvestingPro product that includes additional tips. Currently, InvestingPro lists 14 additional tips for Logitech, each offering a unique perspective on the company’s financial performance and prospects.
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