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Shares of computer-accessory makerLogitech International(NASDAQ: LOGI) were surging after the company posted blowout second-quarter earnings today, roaring past estimates on the top and bottom lines. As of 11:26 a.m. EDT, the stock was up 16.2%.
The maker of gadgets, including keyboards, mice, and headphones, said overall revenue was up 9%, to $564.3 million, and retail sales jumped 14%. The company closed its OEM business last year, and all sales now come from its retail division, meaning sales from continuing operations were also up 14%.
Adjusted earnings per share increased 40%, to $0.35. Both numbers easily beat Wall Street's targets, coming in at $526.3 million in revenue and $0.25 in EPS.
CEO Bracken Darrell told investors:
Sales grew in seven of Logitech's nine product categories in the quarter, with particularly strong growth in mobile speakers, audio, and video collaboration. Keyboards and mice remain its biggest categories by sales, contributing more than 40% of revenue.
Looking ahead, management projected retail sales growth of 8%-10% in constant currency for the full year, and sees non-GAAP operating income of $195 million to $205 million, which should equate to an EPS midpoint of $1.08.
Though the rise of mobile would figure to zap the earnings of computer-accessory companies like Logitech, legacy gadget makers like Logitech andGarminhave found a way to innovate and adapt to a changing market. After Logitech blew past estimates in its last two quarters, I wouldn't be surprised to see it top its full-year guidance, which looks conservative.
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Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.