Logitech beats profit forecast as gaming, conferencing sales rise
LOGI•Logitech reported second-quarter non-GAAP operating income of $231 million, above the $204 million analyst forecast, as sales rose 3% to $1.22 billion. It expects third-quarter sales of $1.36 billion to $1.43 billion and operating income of $220 million to $255 million.
1. Profit beats forecasts
Logitech reported non-GAAP operating income of $231 million for the three months ended September, above the $204 million analyst forecast and the company’s guidance range of $185 million to $210 million. Sales rose 3% to $1.22 billion, in line with forecasts and at the top of its outlook range.
2. Product demand grows
Gaming and video conferencing products saw higher demand. Pointing devices and keyboards grew by mid-single digits even as global PC shipments fell 20%, while video collaboration equipment sales rose 12%. Logitech said 15 new gaming products boosted sales in that category.
3. Quarter outlook
Logitech said it now expects a supplier-factory shutdown to reduce sales by $70 million to $80 million, below its earlier estimate of up to $200 million. For the three months through December, it expects sales of $1.36 billion to $1.43 billion and non-GAAP operating income of $220 million to $255 million, compared with $312 million a year earlier.
