What: Shares of Logitech International SA (NASDAQ:LOGI) were surging higher Thursday after the computer accessories company delivered a strong first-quarter earnings report. As of 2:47 p.m. EDT, the stock was up 13.3%.
So what: The maker of keyboards, webcams, and similar products posted an adjusted earnings per share of $0.20, up a penny from a year ago, and much better than estimates at $0.13 a share. Revenue, meanwhile, was up 13% in constant currency to $480 million, well ahead of the consensus at $434.7 million.
CEO Bracken Darrell said, "Our strategy is working," noting that sales growth was the best in five years and that revenue across all major categories and regions.
Now what: As a result of the strong quarter, management raised its full-year guidance, calling for 8%-10% revenue growth in constant currency, up from a prior view of mid-single digits. It also raised its adjusted operating income guidance for the year up from $185 million-$200 million, to $195 million-$205 million.
Logitech shares reached a post-recession high on the report as the company's focus on innovation appears to be paying off. Logitech has increasingly turned to the mobile market with portable videoconferencing technology and mobile speakers. As the smartphone and tablet market expand, the company should continue to benefit.
Look for analysts to bump up guidance after such a strong quarter as we could see Logitech raise its guidance again in another three months.