Logitech Q2 sales rise 3%, helped by gaming segment; adjusted EPS beats
Overview
Switzerland computer peripherals maker's preliminary Q2 sales rose 3%, a slight beat of analyst expectations
Adjusted EPS for Q2 increased 4%, beating analyst consensus
Company returned $406 mln to shareholders via annual dividend and share repurchases
Outlook
Logitech sees Q3 FY27 sales of $1.36 bln to $1.43 bln
Company expects Q3 FY27 non-GAAP operating income of $220 mln to $255 mln
Logitech expects supplier incident to impact Q3 sales by $70 mln to $80 mln, mostly resolved by Q4
Result Drivers
AMERICAS, VIDEO COLLABORATION AND GAMING - Co said topline growth was supported by growth in the Americas region, Video Collaboration and Gaming segments
STRONG GROSS MARGINS - Co said higher gross margins contributed to non-GAAP operating income exceeding internal outlook
COST MANAGEMENT - Co said rigorous cost management continued while funding targeted investments for growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Slight Beat* | $1.22 bln | $1.21 bln (10 Analysts) |
Q2 Adjusted EPS | Beat | $1.51 | $1.26 (10 Analysts) |
Q2 EPS | $1.25 | ||
Q2 Adjusted Operating income | Beat | $231 mln | $203.28 mln (10 Analysts) |
Q2 Operating income | $201 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy."
Wall Street's median 12-month price target for Logitech international S.A. is CHF95.00, about 3.3% above its October 27 closing price of CHF91.96
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)