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Logitech lifts FY guidance after strong Q1

Published 07/23/2024, 08:28 AM
© Reuters

Investing.com - Logitech (NASDAQ:LOGI) stock rose Tuesday after the Swiss computer hardware maker raised its sales outlook for the year after posting strong revenue growth in its fiscal first quarter.

At 08:25 ET (12:25 GMT), Logitech stock rose just inder 3% to CHF83.04 ($1 = CHF0.8915), and is now up over 50% over the last year.  

Logitech now expects sales to increase by 1% to 3% in 2024, up from the flat-to-2% range it had previously announced, after sales grew 12% in the first quarter to $4.34 billion, compared with the first quarter of the prior year.

This represented the company’s second straight quarter of revenue growth, as it reversed post-pandemic sales declines.

“We started the new fiscal year strong, with high-quality, broad-based growth across all regions and key categories,” said Hanneke Faber, Logitech chief executive officer. “Our team continued disciplined execution, as evidenced by excellent gross and operating margin growth. I am pleased to increase our FY25 outlook for both net sales and non-GAAP operating income.”

Citi Research maintains a ‘neutral’ rating on the Swiss company, with a $100 target price.

“Gross margins delivered upside at +430 bps y/y at 43.3% vs 39.8% consensus on lower product cost and lower promotional spending,” analysts at Citi said, in a note. 

 

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