Logitech On A Roll As Stock Soars 31% Following Acquisitions
Logitech International has reported a 6% increase in sales as their stock soars 31% this year.
Overnight Logitech reported fiscal first-quarter sales increased 6% to $644 million, beating the average estimate of analysts surveyed by Bloomberg.
Shares rose 4.8% in Zurich, the biggest single-day jump in six months.
The Swiss company’s stock has gained 31% this year, after a 6% decline in 2018, valuing the computer-equipment maker at almost A$10.1 billion.
The Company who has successfully acquired brands over the past few years and following the appointment of CEO Bracken Darrell in 2013 is reaping the benefits of the restructuring and go to market activities of these brands.
On 15 September 2016, Logitech announced that they had purchased the Saitek brand and assets from Mad Catz for US$13 million in cash.
On 11 August 2017, Logitech acquired Astro Gaming, makers of professional gaming equipment (mainly headset solutions), for US$85 million in cash.
On 19 August 2018, Logitech announced the launch of their most advanced Ergonomic Mouse called “MX Vertical”. It features a vertical angle of 57 degrees, It also comes with a USB-C charging port.
The product shipped for sales in Australia September 2018.
Bracken said overnight that he has side-stepped significant effects on its business from trade tensions between the U.S. and China, in part by anticipating potential problems with suppliers, Chief Executive Officer Bracken Darrell said.
“We changed supply chain, we’re increasing prices in the U.S.,” Darrell said in an interview. It’s not known whether Logitech prices will rise in Australia.
So far, consumers haven’t felt a “tangible” impact, but further steps might change that, he added.
Darrell said Logitech continues to seek takeover targets of all sizes, including those that could be worth several billion dollars. “We use mergers and acquisitions to accelerate or differentiate things we’re already doing,” he said.
Logitech also named Nate Olmstead as chief financial officer. Olmstead had been interim CFO after Vincent Pilette left for security software firm Symantec.