Logitech International, a Swiss manufacturer of computer peripherals and software, experienced a decline in its stock prices following an announcement of an increase in its outlook. Despite the positive news, Logitech still anticipates a decrease in sales for the current year due to a downturn in spending.
As of 1000 GMT on Tuesday, Logitech shares were down by 6.6% at EUR77.34.
In its recent report, the company revealed that third-quarter sales reached $1.26 billion, a decrease of 1% in U.S. dollars and 3% in constant currency compared to the same period last year. On a more positive note, operating income showed a 26% increase to $222.1 million, while net income rose to $244.7 million from $140.2 million. Despite the overall decline in sales, Logitech now predicts a more moderate annual sales decline of 6% to 7%, ranging from $4.2 billion to $4.25 billion. This is an improvement from its previous forecast of a full-year sales decline of 9% to 12%.
Logitech also adjusted its expectations for operating income, stating a range of $610 million to $660 million, higher than the previous estimate of $525 million to $575 million.
Stifel analysts noted that the increase in guidance was anticipated and maintained their rating at hold. They also commented on the high valuation of Logitech shares.
J.P.Morgan analysts expressed optimism about the company’s execution, which has limited revenue declines in the third and fourth quarters of fiscal year 2024 to a low-single-digit percentage. They believe that investors will shift their focus to the opportunity for Logitech to return to year-on-year growth in the top-line during fiscal 2024.
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