Logitech,
the Swiss-American maker of keyboards and other computer peripherals, rallied sharply Tuesday after reporting earnings that topped expectations.
Logitech
(ticker: LOGI) said that earnings per share in the July-September period came in at $1.09, up 30% from a year earlier and better than the 59 cents expected by analysts. Sales fell 8% from a year earlier to $1.06 billion, but exceeded the Wall Street consensus at $966 million.
Logitech Chief Financial Officer Chuck Boynton said in an interview with Barron’s that results were “better than expected,” driven in particular by strength in computer mice, keyboards and webcams. He said the company saw strengthening demand in Europe, the U.S. was a little above expectations, and Asian demand remained “challenged.”
Demand for Logitech’s mice, webcams and other accessories soared during the pandemic-era work-from-home boom, but have since moderated. Logitech has boosted profits by cutting costs, reducing outlays for logistics and promotions.
Logitech raised is full-year outlook. It now sees sales of $4 billion to $4.15 billion, compared with a range of $3.8 billion to $4 billion before. That’s equivalent to an annual decline of as little as 9% versus the 12% to 16% drop seen earlier.
Boynton said the company is still about 12 to 18 months away from returning to top-line growth.
Logitech also said it was closer to finding a new chief executive after Bracken Darrell left the company in June to take the top job at apparel giant
VF Corp.
(VFC).
Logitech shares jumped 11% in Swiss trading. U.S.-listed shares were up 12%.
Write to Brian Swint at [email protected] and Eric J. Savitz at [email protected]
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