Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Logitech warns on FY 2022 outlook after pandemic-boosted FY 2021

Published 02/28/2021, 10:33 PM
Updated 02/28/2021, 10:35 PM
© Reuters. Logitech keyboards are seen in the computer shop in Zenica
LOGI
-

(Reuters) - Computer goods maker Logitech (NASDAQ:LOGI) International on Monday warned operating income for fiscal 2022 will drop back from a 2021 boom driven stoked by demand for mice and keyboards for work and leisure at home amid the coronavirus pandemic.

Operating income for fiscal 2022, measured under non-Generally Accepted Accounting Principles (non-GAAP), is expected to be between $750 million and $800 million, the Swiss-U.S. company said. That's down from the $1.1 billion it now expects for fiscal 2021, a fraction up from a previous estimate of $1.05 billion.

Sales for fiscal 2022, measured in constant currency terms, will be about flat - plus or minus 5%. For fiscal 2021, Logitech raised its sales growth forecast to about 63% in constant currencies, up from the 57-60% range it previously expected.

In January, Logitech reported a more than three-fold jump in quarterly adjusted operating income, benefiting from the pandemic-driven boost in demand for work-from-home products and gaming accessories.

Sales at the company, which makes mobile speakers, keyboards, mice and video conferencing devices, increased 85% to $1.67 billion in the third quarter, which has traditionally been the company's biggest sales period.

© Reuters. Logitech keyboards are seen in the computer shop in Zenica

The company also said on Monday its expectations of long-term sales growth in constant currency have increased to 8% to 10%, up from high-single digits and that its non-GAAP operating margin target has improved to between 14% and 17%, up from 11% to 14%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.