Logitech Post Record Q3, Profit Outlook Raised
Logitech International has achieved record Q3 sales [up 6% YoY] of US$864 million, as the global gaming market continues to boom, and the acquisition of tech accessory companies contribute significantly to its bottom line.
President and CEO, Bracken Darrell, claims record results stem from its “diverse portfolio”, with double digit growth achieved across gaming, video collaboration, and creativity & productivity.
“We delivered record sales and profits in our biggest quarter of the year”
“On the back of this powerful performance, we are raising our profit outlook for the year.”
Continued growth across gaming and video collaboration has also offset weak mobile speaker and ‘smart home’ sales.
The conglomerate currently owns brands such Logitech, Logitech G, Ultimate Ears, Jaybird, ASTRO Gaming and [as of late] Blue Microphones.Gross margin for the quarter notched 38.1%, driven by a “favourable product mix”, plus better-than-expected cost reductions. The improvement is said to support investments in long-term growth opportunities.
Logitech International has now raised its fiscal year 2019 profit outlook to US$340 million – US$345 million [non-GAPP operating income], up from US$325 million – US$335 million.
The company has forecast an annual sales outlook of 9% – 11% growth [constant currency].For the quarter, GAAP earnings per share soared 40% to US$0.67, up from US$0.48 the same period last year.
Quarterly GAAP operating income notched US$123 million, versus US$100 million a year ago.
Non-GAAP operating income climbed 22% YoY to a record US$143 million, up from $117 million. Non-GAAP earnings per share also lift 22% YoY to US$0.79.
Year-to-date cashflow from operations has also improved, notching US$273 million versus US$256 million for the same period a year ago.