If the pandemic is indeed ending, that good news hasn’t slowed down users of video games, webcams and other computer video peripherals.
The continued boom in sales of these products despite the end of mass lockdowns has boosted earnings at Logitech International (LOGI) - Get Logitech International S.A. Report, the computer peripheral maker that delivered a 26-cents-a-share earnings beat with sales up 66%. Despite this, shares fell following the announcement, part of a broader market decline that day. Overall, Logitech shares are up more than 12% so far this year.
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In an "Executive Decision" segment of his Mad Money TV show, Jim Cramer spoke to Bracken Darrell, president and CEO of Logitech.
Darrell said that Logitech saw a lot of strength in the quarter and delivered great results. In a perfect world, investors would have probably liked the company to raise guidance, he said, but after raising estimates just two months ago, they weren't ready to raise again. Guidance is a company's best estimates to shareholders about upcoming earnings.
Video products are still growing at 72%, he noted, and the company remains very excited about the category.
Logitech posted strong year-over-year growth in almost all its product categories, continuing to benefit from the work- and learn-at-home trends. Sales increased 76% year-over-year for gaming peripherals, 73% for webcams, 72% for video collaboration tools, and 66% for tablet accessories. Gains were 57% for audio products and wearables, 45% for pointing devices, and 44% for keyboards.
Logitech repeated its previous full-year guidance for sales to be flat from a year ago.
Logitech shares are up almost 12% so far this year, and a recent dip could make the stock a better deal.
Darrell also was bullish on e-sports, which continue to gain in popularity, boosted by the summer Olympic games. E-sports is a growing world of organized video gaming competition. He said that new product innovations, like Logitech' Ultimate Ears headphones, which mould to one’s ears in less than 60 seconds, are one of many hidden gems within Logitech.