By all accounts, Logitech International SA (USA) (NASDAQ:LOGI) hit it out of the park in its second quarter of fiscal 2017, recording its highest ever quarterly retail sales.
Impressed investors chased the stock 17.3% higher on Tuesday to a close of $25.22 on volume of 4.33 million shares.
Technically, the stock did it again. When Logitech declared bumper numbers for Q1, shareholders enjoyed a gap-up gain of 10.84% on July 28. Yesterday they were in for a gap up bonanza of 14.93%.
The stock has now overtaken its July 2008 high of $23.68.
It has nearly doubled from its 52-week low of $12.90.
Logitech International SA (USA) (NASDAQ:LOGI)’s Q2 magic
“We’ve delivered an outstanding quarter – the highest Q2 retail sales in Logitech’s history – and a first half ahead of expectations,” said Bracken Darrell, Logitech president and chief executive officer in a statement. “Once more this quarter shows our strategy clearly: new product launches that again demonstrate the power of our innovation engine, ongoing operational excellence, and profitable growth across all our regions and in almost all our market opportunities. As we enter the second half of the year and our biggest quarter, we’ve got momentum, a winning product portfolio and a terrific team.”
The Swiss company manufactures computer products for music, gaming, video and computing applications.
It clocked record quarterly sales of $564 million, up 9%, though retail sales grew 14%. Gross margin jumped to 37%, while operating margin rose to 11.5%.
Operating cash flow improved to $74 million from $11 million a year ago.
In terms of street expectations, Logitech’s EPS of $0.35 beat by a solid $0.10 and revenue beat by $39.75 million.
For the full year 2017, the company expects growth of 8% to 10% in constant currency terms and operating income of $195 million to $205 million.
Logitech International SA (USA) (NASDAQ:LOGI) gaining from cloud computing
A look at the segmental sales shows that the highest growth came in the video collaboration (+42%) and audio-PC and wearables (+34%) segments.
The company has benefited from the explosive growth in cloud where both the above segments find application.
Cloud computing‘s spread “is absolutely helping us,” with “more and more growth all the time,” said CEO Bracken Darrell here.