The shares fell sharply along with the broader market toward the end of 2018 but bounced back to start the new year, buoyed by a strong earnings report in late January.
The computer peripheral maker reported record sales for the fiscal third quarter. Here are the highlights:
- Sales were $864 million, up 6% year over year in U.S. dollars and 8% in constant currency.
- Earnings per share came in at $0.67, up from $0.48 in the year-ago quarter, representing an increase of 40% year over year.
- Non-GAAP earnings per share grew 22% year over year to reach $0.79 compared to $0.65 per share in the year-ago quarter.
As with previous quarters, two of the strongest-performing products were gaming and video collaboration. The company continues to see strong demand for gaming peripherals across mice, keyboards, and headsets. Sales of gaming products grew 23% year over year and made up 25% of total revenue in the quarter.
Sales of video collaboration products grew the fastest of any category last quarter, up 60% year over year, and made up about 9% of total revenue. Other standout performers in the quarter were sales of PC webcams, tablet accessories, and general-use keyboards, as well as audio and wearables.
Management raised its outlook for fiscal 2019 (which ends in March). For the fiscal fourth quarter, management now calls for revenue to be between $340 million and $345 million on a non-GAAP basis, representing year-over-year growth of 9% to 11% in constant currency.
Logitech continues to keep its foot on the pedal in innovation. Video collaboration and gaming have been particularly strong areas of growth for the company in recent years. Management plans to expand the gaming category to console controllers, and it continues to see a significant long-term growth opportunity to sell video products for the vast majority of conference rooms around the world that are not equipped with video capabilities.