Logitech ups full-year guidance, shares rally
By Abigail Townsend
Date: Tuesday 25 Jan 2022
(Sharecast News) - Shares in Logitech International sparked on Tuesday, after the computer accessories specialist increased its full-year forecasts.
Posting third-quarter numbers, Logitech said sales had dipped 2% in the three months to 31 December, to $1.63bn, as it came up against tough comparatives, while operating income declined 41% to $263m.
But the Swiss-US firm also upped guidance for the full year, and now expects annual sales growth of between 2% and 5%, against a previous forecast for flat sales growth plus or minus 5%. Operating income is now forecast to come in between $850m and $900m, compared to earlier guidance for between $800m and $850m.
By 1115 GMT, Logitech's Zurich-listed stock had sparked 11%, and was ahead 7% in pre-marking trading in New York.
Bracken Darrell, chief executive, said: "I'm excited to now have in sight a fiscal year of growth, on top of last year's remarkable performance. Our third-quarter results reflect the strength of our operational capabilities, innovation engines and the choices we made to position ourselves in line with the long-term trends affecting work, play and creating."
Demand for Logitech's keyboards, mice and headsets surged at the start of the pandemic, as people become more reliant on home technology. Third-quarter sales in the previous year surged 80% on a constant currency basis.
The firm has been hit, however, in common with many in the sector, by supply chain constraints.
Victoria Scholar, head of investment at Interactive Investor, said: "It has been challenging year, in which the company came up against bottlenecks in the global supply chain, which impacted its ability to make key products, including headsets and speakers. We are starting to see tentative signs that the worst of the supply chain crisis is over."
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