Logitech International SA (
recently announced that its board of directors has decided to
initiate a recurring regular dividend, to be issued and paid on
an annual basis. However, this is subject to final approval of
the company's shareholders at the Annual General Meeting to be
held in Sep 2013, keeping in mind the relevant Swiss statutory
In this connection, the first payout has been fixed at CHF
0.21 (approximately 22 cents at the exchange rate as on May 22,
2013) per share. Annualized payout of the new recurring dividend
affirms a yield of 3.3% with a stock price of $6.54 as of closing
on May 22, 2013.
The company's earlier dividend was a one-time special payment
made in Sep 2012 totaling $0.847639 per share. In fiscal 2012 the
company performed poorly with Operating income of $72 million,
down 50 percent from $143 million a year ago and this lead to a
sharp fall in the share prices. To combat this, the management
decided to reward the shareholders with this one-time
distribution utilizing the company's strong cash position.
This time Logitech has been reaping the benefits of its recent
performance growth. Concurrent with the announcement, Logitech
also revealed its financial outlook for fiscal 2015 and 2016.
With the current revised cost structure and new product line, the
company expects to experience growth in coming years. In fiscal
2015, the company estimates sales of $2.1 billion, operating
income of $90 million and gross margin of 34.5%. However, in
fiscal 2016, performance is expected to be even better with sales
of $2.25 billion, operating income of $150 million and gross
margin of approximately 35 percent.
Logitech currently has a Zacks Rank #3 (Hold). Other sector
participants are performing better, with
Electronics for Imaging, Inc. (
Synaptics Inc. (
carrying a Zacks Rank #1 (Strong Buy), and
eMagin Corp. (
having a Zacks Rank #2 (Buy)
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