Personal computer and gaming peripherals maker Logitech International beat analyst estimates for the September quarter and raised its full-year guidance. But LOGI stock fell Tuesday after the report.
The Lausanne, Switzerland-based company earned an adjusted $1.20 a share on sales of $1.12 billion in its fiscal second quarter ended Sept. 30. Analysts polled by FactSet had expected earnings of $1.03 a share on sales of $1.11 billion. On a year-over-year basis, Logitech earnings rose 10% while sales increased 6%.
"Growth was broad-based, across regions, categories, and both our consumer and business customers," Logitech Chief Executive Hanneke Faber said in a news release. "We launched a terrific set of innovations in the quarter and we are ready for the holidays."
For the current fiscal 2025, Logitech now expects sales growth of 2% to 4%, vs. its prior target of 1% to 3% growth. It sees adjusted operating income growth of 3% to 7%, up from its earlier target of 0% to 4%.
Gaming peripherals were Logitech's largest category in the September quarter with sales of $300.5 million, up 7% year over year. Keyboards and combos were the second biggest category with sales of $209.9 million, up 8%.
Tablet accessories were the fastest-growing category with sales up 34% to $85.6 million. Webcams were a laggard category, with sales down 9% to $80.2 million.
LOGI Stock Falls After Report
On the stock market today, LOGI stock fell 8.5% to close at 83.99.
JPMorgan analyst Samik Chatterjee reiterated his neutral rating on LOGI stock after the earnings report. In a client note, he said Logitech's beat-and-raise report was a pleasant surprise.
Morgan Stanley analyst Erik Woodring reiterated his underweight, or sell, rating on LOGI stock. He has a price target of 71 on Logitech stock.
In a client note, Woodring said Logitech posted "slightly better-than-expected" results for the September quarter. However, the company's higher-than-expected operating expenses for current fiscal year are likely to limit its profitability, he said.
Barclays analyst George Wang maintained his overweight, or buy, rating on LOGI stock but trimmed his price target to 103 from 105.
"We think second-half fiscal 2025 estimates baked in a fair amount of conservatism to account for macro uncertainty and sell-in/sell-out dynamics, despite improving demand," Wang said in a client note.
Logitech Ranks First In Industry Group
In an interview with IBD, Logitech's CEO Faber said she is optimistic about prospects for holiday-season sales. "Our biggest quarter is the holiday quarter," she said.
Logitech is focused on product innovation to drive gaming product sales and gain market share, she said. The company launched 18 new gaming products in the quarter, including headsets, keyboards and other devices, Faber said.
Logitech stock ranks first out of 15 stocks in IBD's computer hardware and peripherals industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 72 out of 99.
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