By Nina Kienle
Shares in Logitech International declined after the Swiss manufacturer of computer peripherals and software raised its outlook, though it still expects sales to fall in the current year amid a downturn in spending.
At 1000 GMT on Tuesday, Logitech shares were down 6.6% at EUR77.34.
The company reported early Tuesday morning that third-quarter sales came in at $1.26 billion, down 1% in U.S. dollars and 3% in constant currency, compared with the same period the prior year.
Operating income increased by 26% to $222.1 million and net income rose to $244.7 million, up from $140.2 million. The company now expects an annual sales decline of 6% to 7% to $4.2 billion to $4.25 billion. It previously forecasted a full-year sales decline of 9% to 12%, it said.
It expects operating income of between $610 million and $660 million, up from previous expectations of between $525 million and $575 million, it said.
Analysts at Stifel said the guidance increase was expected. They left their rating at hold, saying the share valuation “has become high.”
“While we expect investors to be pleased by the execution from the company, which is limiting revenue declines on a year-on-year basis to a low-single digit percentage in fiscal third-quarter and in the fiscal fourth-quarter outlook, the focus […] is likely to be on the opportunity to return to year-on-year growth on the top-line during fiscal 2024,” J.P.Morgan analysts said in a note.
Write to Nina Kienle at [email protected]
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