What's Going On With Logitech Shares Premarket Tuesday?

Logitech International S.A. LOGI shares are trading lower, reversing its earlier gains, premarket today after it reported fourth-quarter FY24 results.

Revenue rose 5% Y/Y (both reported and constant currencies) to $1.01 billion, exceeding the consensus of $956.1 million.

By category, sales in Video Collaboration rose 3% Y/Y, Gaming increased 7% Y/Y, while Keyboards & Combos sales and Pointing Devices were up by 15% Y/Y and 6% Y/Y respectively.  

Adjusted gross margin expanded to 43.6% from 36.3% a year ago. Adjusted operating income grew 93% Y/Y to $159 million in the quarter.

Adjusted EPS of $0.99 beat the consensus of $0.63.

Logitech held over $1.5 billion in cash and equivalents at the end of FY24 and generated $239 million in operating cash flow in the quarter.

In FY24, Logitech returned $686 million to shareholders through share repurchases and dividends.

FY25 Outlook: The company expects sales of $4.3 billion – $4.4 billion (up 0% – 2%, vs. consensus: $4.395 billion) and adjusted operating income of $685 million – $715 million (-2% to +2% Y/Y).

Last month, Logitech disclosed the departure of chief financial officer (CFO) Charles ‘Chuck' Boynton in May.

Hanneke Faber, Logitech chief executive officer, said, “We start Fiscal Year 2025 with a focus on sustainable, profitable growth supported by several long-term trends that present opportunities for our business: new ways of working, gaming, and transformational AI. Our new, ambitious mission of extending human potential in work and play expands our addressable market and our innovation opportunities.”

Price Action: LOGI shares are down 1% at $78.62 premarket at the last check Tuesday.

Photo via Wikimedia Commons