Logitech soars 19% after earnings beat and raised outlook driven by work-from-home trends
- Logitech continues to see strong demand for its computer accessories like webcams and keyboards as the work-from-home trend is set to extend into next year.
- Logitech reported second quarter earnings that beat analyst estimates and raised its full-year outlook.
- "The growth trends that drive our business have accelerated as society adjusts to its new reality," Logitech CEO Bracken Darrell said.
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Demand for keyboards, webcams, and mouses continues to be strong as the work-from-home is set to continue into next year and could transform into a hybrid working culture, based off of Logitech's second quarter earnings report.
The computer accessories company posted strong growth in the second quarter, which beat analyst estimates, and raised its full year outlook.
Shares of Logitech surged as much as 19% in Tuesday trades.
Here are the key Q2 numbers:
Revenue: $1.26 billion, versus the $846 million estimate
Adjusted EPS: $1.87, versus the 58 cents estimate
FY 2021 outlook: Sales growth of 35% to 40%, versus its previous estimate of 10% to 13%
This marked the first quarter in Logitech's history in which revenue surpassed the $1 billion mark. Revenue grew 75% year-over-year in the quarter.
'The growth trends that drive our business have accelerated as society adjusts to its new reality," Logitech CEO Bracken Darrell said.
Darrell added that conversations with organizational leaders suggest a hybrid work culture will emerge as the new norm following the COVID-19 pandemic.
A hybrid work culture entails employees working both in the physical office and from home based on certain days and weeks.
Aside from the work-from-home trends, demand for Logitech's products have also benefited from a surge in gaming, as the "spectator and participant sport continues with no end in sight," Darrell said.
