Logitech’s non-GAAP operating income climbs by 75% in Q1

Logitech International (SWX: LOGN) published its quarterly financial results on Tuesday that highlighted a 75% increase in its non-GAAP operating income. On the back of robust performance in the first quarter, the company upwardly revised its annual financial guidance for fiscal 2021. Logitech had reported a 13.6% increase in Q4 sales in May.

Shares of the company opened more than 5% up on Tuesday but lost the entire gain in the next hours. At £56.57 per share, Logitech is roughly 45% up year to date in the stock market after recovering from a low of £27.40 per share in early March. Learn more about swing trading.

Logitech forecasts a 10% to 13% growth in its full-year sales

The company attributed its hawkish performance in Q1 to the Coronavirus pandemic that fuelled demand for video conferencing products, webcams, and headsets and companies resorted to work from home. Logitech launched the mouse and keyboard for Apple fans in the first week of July.

The Swiss technology company said that it now expects its sales to see a much broader 10% to 13% increase in fiscal 2021 on constant currencies. In its previous forecast, it had estimated a roughly 5% growth in full-year sales.

Logitech also expressed confidence that its annual non-GAAP operating profit will now lie between £322.88 million and £334.69 million. In its previous guidance, it had estimated a lower range of £299.25 million to £315 million for full-year operating profit (non-GAAP).

According to the Lausanne-based company, headsets, keyboards, and mice were also in demand in Q1 as COVID-19 fuelled the trend of computer gaming in recent months.

Logitech’s net income jumps 58.9% in the first quarter

CEO Bracken Darrell of Logitech commented on its financial results on Tuesday and said:

“Logitech’s business was already positioned to grow from these long-term trends, and since early March they have accelerated, making Logitech more relevant to customers than ever before.”

At £92.37 million, the software and computer peripherals maker said that its non-GAAP operating income in the quarter that ended on 30^th June came in significantly higher than £52.76 million in the same quarter last year.

On a year over year basis, its net income jumped 58.9% in the recent quarter to £56.78 million, while a 22.9% increase in sales to £623.63 million in Q1 was also reported on Tuesday.

Logitech performed largely upbeat in the stock market last year with an annual gain of about 50%. At the time of writing, the Swiss technology company has a market cap of £9.86 billion and a price to earnings ratio of 27.27.