The 10-second takeaway
For the quarter ended June 30 (Q1), Logitech International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share grew. GAAP earnings per share grew.
Margins increased across the board.
Logitech International reported revenue of $477.9 million. The 10 analysts polled by S&P Capital IQ anticipated revenue of $422.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.02. The two earnings estimates compiled by S&P Capital IQ predicted -$0.07 per share. Non-GAAP EPS were $0.02 for Q1 compared to -$0.14 per share for the prior-year quarter. GAAP EPS were $0.01 for Q1 versus -$0.32 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.2%, 380 basis points better than the prior-year quarter. Operating margin was 0.5%, 580 basis points better than the prior-year quarter. Net margin was 0.2%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $499.8 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $0.29.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 883 members out of 945 rating the stock outperform, and 62 members rating it underperform. Among 239 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 230 give Logitech International a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Logitech International is hold, with an average price target of $6.31.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Logitech International SA (USA). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.