Logitech, the renowned Swiss-American manufacturer of computer keyboards and peripherals, saw its stock price rise early Tuesday following the release of its earnings report that surpassed expectations.
Impressive Earnings Growth
In the July-September period, Logitech (ticker: LOGI) reported earnings per share of $1.09, marking a significant 30% increase from the previous year. This figure also exceeded analyst expectations, which had predicted earnings of 59 cents per share. Although sales declined by 8% compared to the same period last year, totaling $1.06 billion, they still managed to outperform estimations.
Success Amidst Changing Consumer Habits
The surge in remote work during the pandemic led to a surge in demand for Logitech’s accessories. However, as consumer spending levels have normalized, the company has adapted by implementing cost-cutting measures and reducing logistic and promotional expenses. These strategies have ultimately enabled Logitech to bolster its profits.
Higher Full-Year Outlook
Logitech has raised its full-year outlook, now projecting sales figures ranging from $4 billion to $4.15 billion. This represents an improvement over the previous estimate of $3.8 billion to $4 billion. Despite an anticipated annual decline of as little as 9%, this adjustment signifies a smaller drop compared to earlier estimates of 12% to 16%.
Progress Towards a New CEO
Following the departure of Bracken Darrell in June, Logitech announced that it is making significant headway in its search for a new chief executive. This development brings stability and anticipation for the company’s future leadership.
In response to the positive earnings report, shares of Logitech surged by an impressive 9% in Swiss trading. Pre-market trading of U.S.-listed shares also reflected significant growth, with an 11% rise to $75.62.