Logitech International, a maker of peripherals for personal computers and mobile devices, beat expectations for its fiscal first quarter but came up short with its sales outlook. Still, LOGI stock surged on the news Tuesday.
On the stock market today, LOGI stock leapt 13.6% to close at 71.52.
The Lausanne, Switzerland-based company late Monday said it earned an adjusted 65 cents a share on sales of $974 million in the quarter ended June 30. Analysts polled by FactSet had predicted Logitech earnings of 45 cents a share on sales of $916 million. On a year-over-year basis, Logitech earnings fell 12% while sales declined 16%.
"This solid first-quarter highlights steady progress on many important metrics," Chief Financial Officer Charles Boynton said in a news release. "We delivered another quarter of reduced inventory and operating expenses while continuing to drive strong cash generation, further fortifying our balance sheet."
However, its sales outlook for the current quarter and full year was below Wall Street's estimates. The midpoint of its second-quarter prediction calls for sales of $951 million, vs. the analyst target of $954 million.
LOGI Stock Breaks Out
For the full year, Logitech predicted sales of $3.8 billion to $4 billion. The midpoint of $3.9 billion was below analyst estimates for $4.1 billion.
Of Logitech's eight product categories, only one posted year-over-year growth in the June quarter: tablet accessories.
The company's largest category, gaming peripherals, saw sales slide 11% to $266 million. Logitech's second largest category, keyboard and combos, recorded a 21% drop in sales to $181 million.
With the move Tuesday, LOGI stock broke out of a cup-with-handle base with a buy point of 66.30, according to IBD MarketSmith charts.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
