LOGITECH INTERNATIONAL S.A.

Recommendation history

• Q2 2019HoldHold. Logitech delivered a strong Q2: constant-currency sales grew 10%, non-GAAP operating income 18% to $85 million, operating margin reached 12.2%, and non-GAAP EPS rose 26% to $0.49. The growth engine remains compelling—Gaming +43%, Video Collaboration +25% reported with underlying growth above 50%, and gross margin at 37.6%—but the shares already reflect much of the execution, while tariff exposure, weak Mobile Speakers/Audio, and EMEA restructuring leave limited room for disappointment.
• Q1 2018BuyBuy: Logitech delivered a broad-based Q1, with sales up 13%, operating profit up 14%, and non-GAAP gross margin expanding 140 bps to 37%; Gaming grew 40%, Video Collaboration 51%, and Smart Home 49%. Management raised FY2018 guidance to 10%-12% constant-currency sales growth and $260 million-$270 million non-GAAP operating income, although ASTRO will contribute roughly 2 points of revenue growth while diluting earnings near term, and Jaybird remains in decline.
• Q3 2017BuyBuy: Logitech delivered a strong Q3, with retail sales up 13% in constant currency, non-GAAP operating profit up 34%, and record non-GAAP gross margin of 37.4%, up 380 bps. Management raised FY2017 retail-sales growth guidance to 12%-13% from 8%-10% and non-GAAP operating profit guidance to $225-$230 million from $195-$205 million; the main tension is whether innovation-led growth and cost savings remain durable after the unusually strong holiday quarter.