Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LOGITECH INTERNATIONAL-REG. We currently have 10 research reports from 1 professional analysts.
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Accelerating revenue and earnings growth!
25 Jan 17
In Q3 16/17 ending in December, the company reported strong growth rates. Revenues increased 7.3% to US$666.7m and, excluding the OEM business in 2015/16, revenues increased by 12.1%. Gross profit improved 19.3% to US$248.7m and the gross margin increased from 33.6% to 37.3%. EBIT also improved considerably by 43.3% to US$96.3m. The EBIT margin increased from 10.8% to 14.4%. In the third quarter of the financial year, the company increased the fair value of contingent considerations of the acquisition Jaybird by US$9.9m. Excluding this positive valuation effect, EBIT increased 28.5% to US$86.3m and the EBIT margin improved to 12.9%. The net result jumped 50% to US$97.5m. Free cash flow in the first nine months reached US$234m compared to US$151m in 2015/16.
Strong operating performance in Q2 16/17
26 Oct 16
The company reported strong Q2 16/17 results ending in September. Revenues increased 14% to US$564m on an adjusted basis. In December 2015, management separated out the Lifesize division and the OEM business from the company with total revenues of US$43.6m. Therefore all reported numbers are based on results from continuing operations. Including the Lifesize business, revenues increased 4.5% and the gross margin improved from 34.5% to 36.9%. EBIT jumped 105.3% to US$52.7m compared to US$25.7m in Q2 15 including losses from discontinued operations of US$12.36m. The EBIT margin improved from 4.8% to 9.3% and the adjusted EBIT margin increased from 7.5% to 11.4%. The share-based compensation alone contributed US$8.5m (+39.4%) to total adjustments.
Strong start in Q1 16/17
02 Aug 16
In Q1 16/17 ending in June, revenues increased 2% to US$479.9m (adjusted excluding LifeSize +7%). The gross margin declined from 36.5% to 35.5%. EBIT jumped 271% to US$25.9m and the EBIT margin increased from 1.5% to 5.4%. The company reported an EBIT margin decline from 8% to 7.9%. This EBIT margin, however, is based on adjusted Non-GAAP related figures. Also the Non-GAAP net income increase 6% to US$33m. In reality, net income increased 138% to US$21.9m, still reflecting the solid improvement in the operating performance. Revenues in the Americas increased by 7% to US$223m, in the EMEA region 24% to US$143m and in Asia Pacific 12% to US$114m with strong business in China. Management also experienced strong revenue growth of 24% in EMEA with double-digit gains in all major product groups.
28 Apr 16
Logitech reported Q4 results ending in March. Revenues declined 3% to US$431m, however, excluding OEM revenues, retail sales increased by 4% and 6% at cc to US$431m. The operating income jumped 22% to US$22m and the EBIT margin increased from 4.1% to 5.2%. The gross margin improved further by 90bp to 33.1% and operating expenses declined by 3%. Revenues in the Americas declined by 9% to US$162m but grew in EMEA by 17% and Asia Pacific by 9%. Revenues in the Americas were negatively impacted by lower mobile speaker sales, which declined 39% to US$24m. The weak performance in Q4 15/16 might also indicate that the growth story for mobile speakers is over. Video collaboration revenues jumped 35% and gaming 19% in Q4 15/16. In the financial year 2015/16, revenues grew 1% (at constant currency +9%) to US%2.02bn. EBIT declined 10% to US$179m. Growth was driven by mobile speakers (+29% to US$230m), new gaming keyboards (+16% to US$245m) and video collaboration which grew 44% to US$89m.
15 Apr 16
The company has acquired the US-based company Jaybird for a total of US$50m in cash and an additional earn-out of up to US$45m. The earn-out is based on growth targets over the next two years. Jaybird produces fitness-focused wireless earbuds and the Reign fitness tracking wristband. The Reign is using Bluetooth to communicate data with an app for IOS or Android. According to Logitech’s management, the company is a leader in wireless audio wearables for sports and active lifestyles. The company started the business in 2006.
It is all about marketing!
02 Mar 16
Today Logitech is hosting a Capital Markets Day. Management reiterated the outlook for the financial year 2016 ending in March. At constant currency revenues are expected to grow between 7% and 9%. Non-GAAP operating income is expected to reach US$170m. In the finanical year 2017, management is expecting non-GAAP operating income to range between US$185m and US$200m. The three-year plan for returning US$500m to shareholders in cash is still valid.
N+1 Singer - NCC Group - Further issues in Assurance
22 Feb 17
NCC released a trading update yesterday afternoon highlighting further issues in its Assurance division. Sales growth has been lower than expected in all regions, resulting in a significant reduction in full year expectations. We have reduced our EPS forecasts by 25% in FY’17 and 22%/25% in FY’18/’19 respectively. Escrow continues to perform in line with expectations. In response to these issues the Board has announced a strategic review into all of the Assurance businesses. The results of the strategic review are expected to be announced at the FY results in July. With an extended period of uncertainty on the horizon we believe it will be hard for investors to gain confidence in NCC in the short term. That said we see fundamental value in the stock. Escrow is unaffected by this warning and remains an extremely high quality business, which we value at £353m in our SOTP. At the current share price this leaves Assurance valued at c.5x cal’17 EBITDA. While this appears to be an attractive multiple for a rare cybersecurity asset, we would like further clarity on the underlying nature of the current issues, hence our Hold recommendation. Our 138p target price assumes a 12x EBITDA multiple for Assurance but we apply a 20% discount to the group to account for the current uncertainty.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - PROACTIS Holdings - H1 in line
20 Feb 17
A positive interim trading update confirms that H1 results are in line with expectations, with revenues up 36% to c£11.8m on the back of strong organic growth (13%) and an in-line contribution from acquisitions. We make no changes to our forecasts, recommendation and target price pending the release of interim results on 26 April.