Logitech beats profit forecast as sales of gaming, conferencing products rise
FILE PHOTO: A view of the Logitech logo on a building at the EPFL Innovation Park in Ecublens near Lausanne, Switzerland, April 30, 2024. REUTERS/Denis Balibouse/File Photo
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ZURICH, Oct 27 : Logitech International on Tuesday reported a better-than-expected profit for the second quarter, with the computer mouse and keyboard maker seeing higher demand for its gaming and video conferencing devices.
The Swiss-U.S. company reported non-GAAP operating income of $231 million for the three months to the end of September, beating forecasts for $204 million in a consensus gathered by Visible Alpha and the company’s own guidance for $185 million to $210 million.
Sales rose 3 per cent to $1.22 billion, in line with analyst forecasts and towards the upper end of the company’s own outlook of $1.19 billion to $1.22 billion.
Logitech said the growth was driven by strong performance in the United States, as well as video collaboration and gaming products, while profit margins also rose as the company achieved a more favourable product mix and faced lower import tariffs into the US.
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Gaming products, which include racing wheels, microphones and mice adapted for computer game players, increased sales by 8 per cent, helped by the launch of 15 new products during the period.
Sales of video collaboration equipment rose 12 per cent as business customers refreshed their workplaces after encouraging staff back to the office.
Logitech also said it had suffered a lower-than-expected impact from the forced closure at a factory of one of its semiconductor suppliers earlier this year, which it originally expected to cost it $200 million in lost sales in the next quarter.
After finding other suppliers the company said it now expects the impact to be $70 million to $80 million. The factory reopened in September, with full production expected to be resumed by the end of 2026.
As a result, Logitech said its sales would be in the range of $1.36 billion to $1.43 billion for the three months to the end of December.
It also expects non-GAAP operating income of $220 million to $255 million down from $312 million a year earlier, due to higher component and transport costs, as well as the lost sales caused by the factory shutdown.
Source: Reuters
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