Tuesday, August 05, 2014 3:53:54 PM
August 05, 2014
LOGI was getting way ahead of itself price wise earlier this year, so the PPS pull back was justified. Now that their execution caught up to the price, I agree that LOGI is finally going to start rising based on strong underlying fundamentals.
LOGI trades with the market, so down days drag it down. It's given back more than half it's gain after another terrific earnings report two weeks ago. I'm just waiting to see how the correction is shaking out and then I am going to add to my position.
Disclosure: I am long LOGI and bought several times during the spring and summer of 2013 in the mid $6's and low $7's.
Logitech (LOGI) concluded fiscal 2014 in a solid fashion, delivering better than expected results. It seems that its three-year turnaround strategy is on a roll. Logitech was pleased with sales of its products, which were well-accepted by customers, enabling the company to achieve its goals that it set at the beginning of the fiscal year. On the back of its strong momentum, the company expects its sales and profitability to improve in the future.
Strong opportunities ahead
Logitech is seeing exciting growth opportunities in PC gaming, while the growing acceptance of tablets, mobile speakers and other accessories are some more tailwinds. Logitech is also well-positioned to expand its footprint beyond its traditional PC peripheral business. Moreover, it is also keeping a check over its expenses. It expects its cost cutting initiatives to be a key earnings growth driver in this new fiscal year as well.
Logitech’s moves are more dedicated toward profitability, and the company is now focusing on innovation to deliver better products. In this regard, the company’s moves to hire a chief design officer should lead to long-term improvements. The company has seen good progress in customers' purchase satisfaction levels for its products, which is justified by 121 design awards that it won recently.
Cost-cutting moves
Logitech is looking to continue its cost-cutting moves to improve its top line and profitability. Besides these initiatives, Logitech is also working on strengthening its savings strategy. Recently, Logitech also booked a $5 million restructuring charge as a part of its infrastructure savings, but it believes that these short-term pains will lead to long-term improvements.
It has consolidated its Silicon Valley campus from two to one. With this consolidation, Logitech is moving into an open space environment to improve collaboration. The company appears to be in good shape, and with such commendable moves, it can become a faster and more profitable company in the near future.
The way forward
Logitech's business model can deliver consistent cash flow on an annual basis. The company is well positioned for robust performance in fiscal 2015. It is expecting much traction in the PC gaming segment, driven by the launch of its newest gaming peripheral, the G502 Proteus Core tunable mouse. This product is already in good demand in the market. The company believes that there is solid potential for it to drive share gains in fiscal 2015. Further, Logitech has said that it will launch new, innovative gaming products in the coming months.
Moving on to the tablet segment, Logitech is seeing positive trends and expects that sales of tablets will increase in the coming days. So it is working on positioning its tablet keyboard to capture the market. The low price on the keyboards will also be an added advantage for the company. Logitech recently announced three new protected cases for the iPad, and more product introductions can be expected from throughout the fiscal year.
In the mobile speaker segment, Logitech sees strong demand for its new speaker, the UE BOOM. The company was not sure about the acceptance of this speaker, but it has outpaced expectations and has become a key reason for tripling speaker sales in the last year.
Conclusion
Logitech is seeing positive trends throughout the business. In addition, the company is laser-focused on cost-cutting and innovations. As such, investors should definitely consider investing in Logitech for the long run.
Recent LOGI News
- New Logi AI Prompt Builder Software: Fast, Fluent, Fluid AI Access, For Free • Business Wire • 04/17/2024 07:01:00 AM
- Logitech Announces Date for Release of Fourth Quarter and Full-Year Financial Results for FY 2024 • Business Wire • 04/11/2024 07:01:00 AM
- Logitech’s Streamlabs Launches TikTok LIVE Integration to Power Seamless Streaming • Business Wire • 04/10/2024 07:01:00 AM
- LOGITECH G Unveils the PRO X 60 Gaming Keyboard Featuring KEYCONTROL Technology - Designed with Esports Athletes and Engineered to Win • Business Wire • 04/09/2024 07:03:00 AM
- Logitech Unveils Signature Slim Keyboard and Combo to Seamlessly Flow Between Work and Life at the Desk • Business Wire • 03/27/2024 07:01:00 AM
- New Logitech Mevo Core 4K Camera Enables Seamless Wireless Live Streaming of Any Event, Anywhere • Business Wire • 03/19/2024 01:00:00 PM
- Apple & Google in Talks for Gemini AI on iPhone, Nvidia’s GTC Conference Today, and Latest News • IH Market News • 03/18/2024 11:10:46 AM
- Logitech Announces CFO Departure • Business Wire • 03/18/2024 06:00:00 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/11/2024 08:05:55 PM
- Logitech’s Future Positive Challenge in Search of Disruptive Carbon Reduction Solutions • Business Wire • 03/07/2024 08:01:00 AM
- Logitech Introduces MX Brio, Its Most Advanced Webcam Designed for the Evolving Ways of Working and Streaming • Business Wire • 03/06/2024 08:01:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/28/2024 02:30:35 AM
- Now Available in North America, Logitech Casa Pop-Up Desk, the Innovative All-In-One Solution for New Ways of Working • Business Wire • 02/27/2024 02:00:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/26/2024 09:01:48 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/26/2024 01:39:28 PM
- Logitech to Participate in Upcoming Investor Conferences • Business Wire • 02/13/2024 09:01:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/09/2024 01:40:58 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/08/2024 09:12:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/07/2024 01:44:09 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/07/2024 01:02:42 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/03/2024 01:29:52 AM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/02/2024 07:18:06 PM
- Logitech First to Transition Video Collaboration Portfolio to Recycled Plastic and Next Life Materials • Business Wire • 01/30/2024 08:01:00 AM
- Logitech Files Quarterly Report on Form 10-Q • Business Wire • 01/25/2024 11:00:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 01/25/2024 09:34:47 PM
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