Logitech Stock Gains on Q3 Earnings Beat

By Benzinga
Benzinga
Benzinga
January 26, 2022 Updated: January 26, 2022

Logitech International SA. reported a third-quarter FY22 sales decline of 2 percent year-on-year to $1.63 billion, beating the consensus of $1.27 billion.

Category sales grew 29 percent Y/Y in Keyboards & Combos and 8 percent Y/Y in Pointing Devices and Gaming. Video Collaboration was down 2 percent Y/Y.

Margins

The non-GAAP gross margin contracted 460 bps to 40.6 percent.

Non-GAAP operating income declined 37 percent to $302 million, and the corresponding margin contracted 1,010 bps to 18.5 percent.

Non-GAAP EPS of $1.55 beat the consensus of $1.10.

Logitech generated $377 million in operating cash flow and held $1.4 billion in cash and equivalents.

“Our Q3 results reflect the strength of our operational capabilities, innovation engine, and the choices we made to position ourselves in line with the long-term trends affecting work, play, and creating,” CEO Bracken Darrell said.

Outlook

Logitech raised its FY22 outlook to 2 percent–5 percent sales growth in constant currency and $850 million–$900 million in non-GAAP operating income.

The company’s previous outlook was flat sales growth in constant currency, plus or minus 5 percent, and $800 million–$850 million in non-GAAP operating income.

By Anusuya Lahiri

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.

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