These 2 Nasdaq Stocks Are on the Rise Tuesday Morning

Sam Fried

Table of Contents Logitech connectsEricsson gets a 5G boost Wall Street seemed to revel in the pause in the stock market’s recent correction, but that respite appears likely to be short-lived. Based on futures market activity on Tuesday morning, the Nasdaq Composite (NASDAQINDEX:^IXIC) looks poised to fall sharply again when […]

Wall Street seemed to revel in the pause in the stock market’s recent correction, but that respite appears likely to be short-lived. Based on futures market activity on Tuesday morning, the Nasdaq Composite (NASDAQINDEX:^IXIC) looks poised to fall sharply again when the market opens. As of 7:30 a.m. ET, Nasdaq futures were down almost 2%.

Nasdaq investors are waiting for some high-profile earnings reports from some of the most valuable companies in the market later in the week. However, some smaller companies are already releasing their latest results, and two Nasdaq stocks posted solid premarket gains Tuesday morning after announcing how they did. Below, you’ll learn why Logitech International (NASDAQ:LOGI) and Ericsson (NASDAQ:ERIC) were on the rise and what they’re saying about their respective industries.

Image source: Getty Images.

Logitech connects

Shares of Logitech International were up almost 5% on Tuesday morning. The maker of computer peripherals released fiscal third-quarter results that held up well even after a blockbuster year in 2021.

At first glance, Logitech’s numbers might have seemed a bit disappointing. Sales came in at $1.63 billion, down 2% from the year-ago period. Adjusted earnings of $1.55 per share were down 37% year over year. However, the COVID-19 pandemic and other factors contributed to amazing and arguably unsustainable gains in the year-ago quarter, which featured 85% revenue growth. Earnings per share were almost double what they were two years ago before the pandemic.

Logitech saw particular strength in sales of keyboards, mouse and trackball devices, and video-gaming products. Although video collaboration products like webcams saw modest declines from year-ago levels, sales in that category had more than tripled in the third quarter of fiscal 2021 compared to the same period in 2020.

Investors were pleased to see Logitech boost its sales outlook for the full 2022 fiscal year, moving from flat sales growth projections to calls for a rise of 2% to 5% in revenue. An extra $50 million in adjusted operating income should help bolster the bottom line as well, making Logitech a stolid business even in the face of volatility in the stock market.

Ericsson gets a 5G boost

Meanwhile, shares of Ericsson gained almost 6% in Tuesday’s premarket session. The networking equipment company reported solid fourth-quarter results that reflected the strength of the industry.

Ericsson’s growth was measured but dependable. Organic sales rose 2% year over year, with good performance outside of China offsetting a 3% drop in the world’s most populous nation. Gross margin improved by nearly 3 percentage points from year-ago levels. That resulted in net income jumping 41% and earnings per share gaining 34%.

The company once again reiterated its commitment to using 5G network technology to accelerate its innovative efforts. Ericsson’s planned acquisition of Vonage Holdings would mark a key step in its plans to develop a global network platform.

Ericsson’s shares have been volatile in the past year, falling by nearly a third from their highs last April. Shareholders are more optimistic, however, that the networking company can make good on its strategic plans and take greater advantage of the huge opportunities that 5G upgrades are making available.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.


https://www.fool.com/investing/2022/01/25/these-2-nasdaq-stocks-are-on-the-rise-tuesday-morn/

Next Post

Future Technologies and Megh Computing Announce Strategic Partnership to Deliver Intelligent Video Analytics With Real-Time Performance for Smart Cities, Smart Buildings, and Beyond | Business

SUWANEE, Ga.–(BUSINESS WIRE)–Jan 25, 2022– Future Technologies Venture, LLC (Future Technologies) and Megh Computing have partnered to bring industry-leading Open Analytics computer vision solutions to industrial, government, service provider, and other markets. Future Technologies is an international end to end solution provider of innovative Connectivity, Compute (Cloud, Edge, Hybrid, MEC), […]

Subscribe US Now