Logitech: Q3 Earnings Outperform; 2022 Guidance Raised

Logitech International (NASDAQ: LOGI) has posted upbeat earnings for the third quarter of Fiscal Year 2022. Moreover, the company has increased the annual guidance for sales and earnings.  

Following the news, shares of the Switzerland-based manufacturer of computer peripherals and software gained more than 8% in the pre-market trading session, at the last watch. 

Results in Detail 

Logitech reported adjusted earnings of $1.55 per share, topping analysts’ expectations of $1.22 per share. The company reported earnings of $2.45 per share in the same quarter last year.  

Meanwhile, total sales of $1.63 billion declined 2% year-over-year but surpassed the Street’s estimate of $1.5 billion. 

Product-wise, net sales from Keyboards & Combos increased 29% year-over-year to $281.6 million, while Pointing Devices was up 8%, at $231.1 million, and Gaming recorded sales of $469.3 million, up 8%.  

On the negative side, PC Webcam sales fell 13% to $115.1 million, while sales at Tablet & Other Accessories stood at $82.9 million, down 40%. Also, Video Collaboration sales declined 2% to $287.2 million. 

Adjusted operating income came in at $302 million, down 37% year-over-year, reflecting the company’s planned and strategic investments in marketing and innovation to reap benefits in the future. 

Official Comments 

In response to encouraging third-quarter results, Logitech CEO Bracken Darrell said, “I’m excited to now have in sight a fiscal year of growth for FY 2022, on top of last year’s remarkable performance. 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.” 

Outlook 

For Fiscal 2022, the company now expects sales growth to be between 2% and 5% in constant currency, up from prior expectations of flat sales growth (+/- 5%).

Additionally, adjusted operating income is forecast in the range of $850 million to $900 million, above previous projections of $800 million to $850 million. 

Analysts’ Recommendation

The Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 5 Buys, 3 Holds, and 1 Sell. The average Logitech price prediction of $99.79 implies 34.04% upside potential. Shares have lost 26.7% over the past year. 

Bloggers Weigh In 

Bloggers seem enthused by the company’s earnings results. TipRanks data shows that financial blogger opinions are 91% Bullish on Logitech, compared to a sector average of 70%.

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