Logitech International SA (USA)(NASDAQ:LOGI) Up 15% on Better Than Expected Earnings and Strong Forecast

Logitech International SA (USA)(NASDAQ:LOGI) is up 15% today. The company announced better than expected results for 1st quarter and has increased their future operating income forecast for year 2015.

The company is a pioneer in creating products that bring together people internationally through an online digital experience. The company has products in communication, entertainment, and computing. Their software and hardware helps enhance social networking, gaming, music and video entertainment, video security, and even location finding.

With a market cap of $2.15B, the stock has a range of $6.46 to $16.88 over a 52 week period. $2.1 billion in sales was for the final year of 2013, with an operating income of -$252mm. Cash flows from the operations amounted to $117mm and the final earnings per share were $1.44.

First Quarter sales were $484mm, 1 percent higher than the previous first quarter of last year. Sales were up 3 percent.

Operating income is $25mm, with an EPS of $0.13, compared to $0.01 in the same first quarter last year.

Non-Gaap operating income was $44mm with an EPS of $0.23, compared to $0.07 just a year ago in the same quarter. This huge jump could explain the stock’s 15% gains today, which could indicate further future profitability of the company. First quarter cash flow was $28mm.

As a result, Logitech is confident with their past earnings and feels their future is bright. They have therefore stated their guidance to be $2.16b in sales, and that their non-gaap operating income will increase from $145mm to $170mm. The stock currently has a P/E of 33.16. This could raise the EPS effectively to $1.50-$1.70. With a 10.6 multiplier based on taking the annual sales divided by total share price and amount of shares, this could raise their stock price to $16.50 by when earnings are announced and they are actually realized by December 2015. If this growth trend continues and meets guidance, the overall gain could exceed 7.5% by the end of the year based on the future predicted stock price and the current stock price.

Vontobel has raised their guidance from hold to buy as a result of the new earnings.

Various brokers and brokerages have raised their guidance over the months. Zacks and Credit Suisse both have raised their guidance to Outperform, with Zacks $15.00 price target being surpassed today. Since the beginning of the year, firms like Goldman Sachs, Barclays have given buy ratings on the company.