- Logitech International SA (NASDAQ:LOGI) reported a third-quarter FY22 sales decline of 2% year-on-year to $1.63 billion, beating the consensus of $1.27 billion.
- Category sales grew 29% Y/Y in Keyboards & Combos and 8% Y/Y in Pointing Devices and Gaming. Video Collaboration was down 2% Y/Y.
- Margins: The non-GAAP gross margin contracted 460 bps to 40.6%.
- Non-GAAP operating income declined 37% to $302 million, and the corresponding margin contracted 1,010 bps to 18.5%.
- Non-GAAP EPS of $1.55 beat the consensus of $1.10.
- Logitech generated $377 million in operating cash flow and held $1.4 billion in cash and equivalents.
- "Our Q3 results reflect the strength of our operational capabilities, innovation engine, and the choices we made to position ourselves in line with the long-term trends affecting work, play, and creating," CEO Bracken Darrell said.
- Outlook: Logitech raised its FY22 outlook to 2% - 5% sales growth in constant currency and $850 million - $900 million in non-GAAP operating income.
- The company's previous outlook was flat sales growth in constant currency, plus or minus 5%, and $800 million - $850 million in non-GAAP operating income.
- Price Action: LOGI shares traded higher by 7.79% at $80.25 in the premarket session on the last check Tuesday.
