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Logitech International Exceeds Earnings Expectations and Updates Guidance

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Andrew R. Michaud

• August 13, 2023

Logitech International, a leading computer peripherals maker, has reported better-than-expected earnings in its fiscal first quarter and has revised its guidance upwards, despite experiencing a decline in sales.

Sales Outlook

Although the company still anticipates a sales decline in the first half of the fiscal year, it now expects the decline to be less severe than previously projected. This positive development has resulted in a 3.4% increase in the company's Swiss-listed shares during early European trading.

Logitech now forecasts sales of between $1.875 billion and $1.975 billion in the first half, compared to the previous range of $1.8 billion to $1.9 billion. The company predicts a sales decline of 14% to 19%, displaying improvement from its initial estimate of 18% to 22%.

Impressive Q1 Results

Logitech's first-quarter results have surpassed analyst expectations, contributing to its increased outlook. The company reported adjusted earnings per share of $0.65, which exceeded the estimated $0.46 according to FactSet. Furthermore, Logitech achieved sales of $974 million, surpassing expectations of $916 million, despite a 16% year-over-year decrease.

Encouraging Words from Interim CEO

Interim CEO, Guy Gecht expressed his pride in the team's accomplishments during the first quarter, acknowledging the challenges faced by the market.

Stable Performance in the Stock Market

Following the sudden departure of CEO Bracken Darrell last month, Logitech's Swiss-listed stock experienced a significant decline of 12.5% in a single day. However, the stock has since rebounded and only experienced a modest 0.3% decrease so far this year during early European trading.