Logitech (LOGI 36.32, -3.70) has slid 9.3% in pre-market despite
beating earnings expectations and reaffirming its guidance. The pre-market
weakness has sent the stock into the neighborhood of its low from early April.
The Swiss manufacturer of computer peripherals reported above-consensus second quarter earnings of $0.49 per share on revenue, which increased 9.3% yr/yr to $693.90 mln, but was shy of market expectations.
Gross margin improved by 110 basis points to 37.6%.
The company recorded revenue growth in most of its segments. Most notably gaming revenue increased 41.0% to $160.79 mln. This was the 13th consecutive quarter of growth, which helped the Gaming segment become Logitech's largest segment by revenue.
Keyboards & Combos revenue grew 11.0% to $131.87 mln, Pointing Devices revenue increased 4.0% to $128.34 mln, PC Webcams revenue grew 3.0% to $28.22 mln, Tablet & Other Accessories revenue increased 19.0% to $36.71 mln, and Video Collaboration revenue grew 24.0% to $57.18 mln.
Conversely, Mobile Speakers revenue fell 15.0% to $77.10 mln, Smart Home revenue fell 50.0% to $9.24 mln, and Audio & Wearables revenue declined 1.0% to $61.56 mln.
Logitech's sales in Asia Pacific surged 24.0% to $189 mln while sales in the Americas increased 8.0% to $284 mln. Sales in Europe, Middle East, and Africa were unchanged at $218 mln.
Looking ahead, Logitech reaffirmed expectations for fiscal year revenue between $2.80 bln and $2.85 bln, which encompasses current market expectations. Operating income for the fiscal year is expected between $325 mln and $335 mln.
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