Why Logitech Shares Are Trading Lower Premarket Tuesday

Logitech International S.A. (NASDAQ: LOGI) shares are declining premarket today after it reported third-quarter FY24 results.

Revenue fell 1% Y/Y (-3% Y/Y in constant currencies) to $1.255 billion, exceeding the consensus of $1.245 billion.

By category, sales in Video Collaboration fell by 2% Y/Y, Gaming decreased by 1%, while Keyboards & Combos sales and Pointing Devices were up by 4% Y/Y each.  

Adjusted gross margin expanded 440 bps Y/Y to 42.3%, led by lower product and logistics costs and reduced promotional activities.

Consequently, adjusted operating income grew 22% Y/Y to $248 million in the quarter. Adjusted EPS of $1.53 beat the consensus of $1.13.

Logitech held $1.41 billion in cash and equivalents and generated $443 million in operating cash flow.

In the quarter, Logitech returned $188 million to shareholders through share repurchases.

FY24 Outlook: The company raised guidance for sales to $4.2 billion – $4.25 billion (from $4.0 billion – $4.15 billion, vs. consensus: $4.22 billion) and adjusted operating income to $610 million – $660 million (+4% to +12% Y/Y) from $525 million – $575 million.

Logitech says that while the net sales decline rate has improved, several headwinds and uncertainties may impact its net sales throughout FY25. 

In October 30, 2023, following an extensive search, Logitech appointed Hanneke Faber as its new chief executive officer, effective December 1, 2023.

Price Action: LOGI shares are down 6.89% at $89.32 premarket on the last check Tuesday.

Photo via Wikimedia Commons