Computer parts maker Logitech raises full-year guidance
Logitech International lifted its full-year guidance on Tuesday after the computer keyboard and webcam maker increased profit and slowed the rate of its sales downturn during its second quarter ended Sept. 30, reports Reuters.
The Swiss-American company, which experienced a strong pandemic as people stocked up on its equipment to work from home, added it was closer to finding a new CEO after Bracken Darrell left in June to take charge of Vans sneaker maker VF Corp.
Both developments are likely to boost the company, whose chairperson Wendy Becker came under fire from co-founder Daniel Borel last month.
The company's stock, which closed Monday at 61.9 Swiss francs, was indicated to rise 8.2% in premarket activity on the Zurich stock exchange.
"We made great progress toward a return to growth and exceeded our pre-pandemic profit levels," said Interim CEO Guy Gecht.
In the three months to Sept. 30, Logitech continued its sales fall as it lapped high comparisons during the pandemic years. However, the 8% drop in the second quarter to $1.06 billion was half the rate of the previous quarter's 16% fall in sales.
This meant sales during the company's first half fell 12% - better than the 19%-14% fall Logitech had been expecting.
Meanwhile, profit rose as Logitech continued to cut costs by reducing spending on logistics and promotions.
Non-GAAP operating income in the second quarter rose 17% to $183 million, pushing the half-year figure to $292 million - better than the $180 to $220 million Logitech forecast.
As a result, Logitech, which also makes mobile speakers, headsets and computer mice, lifted its full-year sales and profit outlook.
It now expects full-year sales of $4 billion to 4.15 billion, up from its previous view of $3.8 billion to $4 billion.
Full-year non-GAAP operating income is also expected to be higher than its earlier forecast, at $525 million to $575 million, Logitech said.
After the results Bank Vontobel raised its target price to 77 francs from 71, saying Logitech "continues to execute with high precision on a proven and strong business model and financial model."