Logitech Delivers Impressive Q1 Results on Strong Revenues

Computer peripherals and software manufacturer Logitech (LOGI) has reported better-than-expected fiscal first-quarter results on impressive revenue growth.

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Adjusted earnings came in at $1.22 per share, and surpassed the consensus estimate of $0.96 per share. Also, it compares favorably with $0.64 per share reported in the same quarter last year.

Q1 revenues of $1.3 billion were up 66% (on a reported basis) from the previous year’s quarter, and surpassed the Street’s estimates of $1.2 billion. Gaming, video collaboration and PC webcams product categories witnessed sales growth of over 80%. (See Logitech stock chart on TipRanks)

The President and CEO of Logitech, Bracken Darrell, said, “Our key categories grew high double digits. This performance demonstrates the strength of our capabilities, excellent operational execution, and ability to capitalize on long-term trends like gaming, streaming and creating, hybrid work and video everywhere.”

Furthermore, Logitech reaffirmed flat sales growth expectations for Fiscal Year 2022 of nearly 5% in constant currency. Also, it expects to report $800 million to $850 million in adjusted operating income.

On July 21, Wedbush analyst Michael Pachter reiterated a Hold rating on the stock with a price target of $120 (0.7% downside potential).

Pachter said, “We expect Logitech to maintain this high level of revenue generation, with annual expansion likely in the single digits over the next three years as it will likely retain the majority of its larger user base.”

Based on 2 Buys and 4 Holds, the stock has a Moderate Buy consensus. The average Logitech price target of $131.17 implies 8.5% upside potential from current levels.

According to TipRanks’ Smart Score system, Logitech gets a 7 out of 10, which indicates that the stock is likely to perform in line with market averages.