Why Logitech Shares Leaped
Oct 24th 2013 12:13PM
Updated Oct 24th 2013 12:14PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of PC peripherals specialist Logitech International popped 12% today after its quarterly results and outlook topped Wall Street expectations.
So what: The stock has soared in recent months on optimism over its turnaround prospects, and today's wide Q2 beat -- EPS of $0.20 versus the consensus of $0.06 -- coupled with upbeat guidance only reinforces that positive sentiment. While sales for the quarter fell 3% over the year-ago period to $531.97 million, it was still much better than Wall Street had expected, suggesting that Logitech's new product launches are rapidly gaining traction.
Now what: Management now sees full-year operating income of $100 million -- up $13 million from its prior view -- on revenue of about $2 billion. "We're making progress toward building a faster and more profitable Logitech," said CEO Bracken Darrell in a statement. "Athough we have more work in front of us, I am confident that we are on track with our turnaround strategy." With the stock now up 60% from its 52-week lows and trading at a 20-plus forward P/E, however, much of that progress might already be baked into the valuation.
More reliable ways to build wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.
The article Why Logitech Shares Leaped originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Logitech International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.