Logitech Stock Gains on Q3 Earnings Beat

The logo of the Swiss computer control devices manufacturer Logitech is seen in front of the company offices in Morges, Switzerland, on Jan. 6, 2008. (Fabrice Coffrini/AFP via Getty Images)

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

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