Why Logitech Shares Are Shooting Higher Today

Logitech International S.A. (NASDAQ: LOGI) reported Q1 FY24 revenue of $974.5 million, down 16% Y/Y (-15% in constant currencies), exceeding the consensus of $912.3 million.

By category, sales in Video Collaboration fell by 23%, and Pointing Devices decreased by 5% Y/Y.

Gaming sales decreased by 11%, and Keyboards & Combos sales declined by 21% Y/Y. 

Adjusted gross margin contracted 100 bps Y/Y to 39.0%.

Adjusted operating income fell 25% Y/Y to $109 million in the quarter.

Adjusted EPS of $0.65 beat the consensus of $0.45.

Logitech held $1.25 billion in cash and equivalents and generated $240 million in operating cash flow.

Charles Boynton, CEO, said, "We delivered another quarter of reduced inventory and operating expenses while continuing to drive strong cash generation, further fortifying our balance sheet. With one quarter completed, we are pleased to provide a full-year and updated first-half outlook."

Outlook: For H1 FY24, Logitech revised guidance for sales to $1.875 billion - $1.975 billion (+19% - 14% Y/Y; from $1.8 billion - $1.9 billion earlier) and adjusted operating income to $180 million - $220 million (+40% - 27% Y/Y; from $160 million - $190 million earlier). 

The company provided FY24 guidance for sales at $3.8 billion - $4.0 billion (vs. consensus: $4.1 billion) and adjusted operating income of $400 million - $500 million (+32% - 15% Y/Y).

Last Month, Logitech's board of directors approved a new, three-year share buyback program of up to $1 billion.

Last month, the company disclosed the departure of its president and chief executive officer (CEO), Bracken Darrell, effective June 13, 2023.

Price Action: LOGI shares are trading higher by 6.54% at $67.08 premarket on the last check Tuesday.