Hot Tech stock to watch: Logitech International SA (NASDAQ: LOGI)

Free $100 Forex No-Deposit Bonus

Logitech International SA (NASDAQ: LOGI) stock rose over 2% on May 12th, 2020 (as of 10:09 am GMT-4 ; Source: Google finance) after the company in the fourth quarter of FY 19 has reported 15% increase in the sales to $709M, on the back of double-digit growth in the three large categories – Creativity & Productivity, Gaming, and Video Collaboration. The company has delivered the Non-GAAP gross margin in Q4 of 39.8%, which represents a 180 basis points expansion despite of China tariff, currency exchange rate, and COVID-19 headwinds. Non-GAAP operating income in Q4 grew 23% to $79M, and non-GAAP earnings per share were up 11% to $0.42.

Moreover, the sales in the Americas region were up 30% in Q4, with strong double-digit growth in PC Peripherals and Gaming and more than a doubling in Video Collaboration sales. In Q4, the EMEA region has posted sales growth of 7%, with sell-through growth in the double digits. Q4 growth in the Asia Pacific region rose to 5% after two quarters of low single-digit growth. China sales were down slightly in Q4, driven by the earlier start of the COVID-19 pandemic in the region. Similar to the other regions, sell-through growth in Q4 was up double digits.

Furthermore, Pointing Devices category achieved stable sales growth of 4% in Q4. During 2019, several strong innovations in the category, such as MX Master 3, expanded global distribution of Pebble, and consistent performance in the mainstream mice all contributed positively to the growth. Keyboards & Combos sales were up 13% in Q4. The company’s recently launched premium MX Keys wireless keyboard added to the strong growth in the category for the year. PC Webcams sales increased 34% in Q4 with strong double-digit growth in the Americas and Asia Pacific in Q4 on the back of increased remote work, distance learning, and telemedicine adoption. The sell-through upside was especially pronounced during the quarter, starting in the month of March. PC Webcam growth also benefited during the fourth quarter from the introduction of Logitech StreamCam, which is the new webcam designed specifically for streamers and content creators. Gaming category delivered sales growth of 10% in Q4, driven by growth in Gaming Mice, Keyboard, Simulation, and the recent Streamlabs acquisition, offset by a decline

Additionally, the company has confirmed its Fiscal Year 2021 outlook to be of mid-single-digit sales growth in constant currency and the range of $380 million to $400 million in non-GAAP operating income.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.