Shares of Logitech (LOGI) - Get Report surged on Tuesday after the peripheral computer-gear and gaming-device maker posted better-than-expected sales and earnings, and beefed up its forecast of what's to come going into its full fiscal year.
Logitech reported fiscal second-quarter sales of $1.26 billion and per-share earnings of $1.87 - both well above analysts’ forecasts and above the billion-dollar mark for the first time in its history. Operating income rang in at $321.6 million vs. $68.1 million a year ago.
The company also said it now sees full-year sales rising between 35% and 40% from year-ago levels, up substantially from previous forecasts of sales being up between 10% and 13%.
Full-year operating income is expected to fall between $700 million and $725 million vs. previous forecasts of between $410 million and $425 million.
Analysts were quick to boost their outlook for Logitech, with both Citigroup and Morgan Stanley praising the results.
Citi analyst Asiya Merchant noted Logitech’s “blow-out” quarter for the stock as it benefits from continued work-from-home and lockdown demand, though cautioned that “sustainability” of demand indicated closer scrutiny of the company’s medium-term growth outlook.
J.P. Morgan analyst Paul Chung was a bit more optimistic, raising his recommendation on the stock to overweight from neutral and lifting his one-year price target to 90.83 Swiss francs.