Logitech: Fiscal Q2 Earnings Snapshot

Logitech (LOGN) reported Q2 sales of $1.22B, GAAP EPS $1.25, with strong mice/keyboard growth and 45.2% adj. gross margin. Q3 guidance is $1.36–$1.43B, but a $70–$80M supplier shortfall is expected. Regional demand varied, with Americas up 13% and Asia-Pacific/EMEA down. Travel was halted due to cautious business conditions.

Morgan Stanley maintained an Underweight rating for Logitech (LOGI) but raised its price target to $94 from $90. GuruFocus values LOGI at $101.09, suggesting a 3.1% undervaluation. Insider selling and mixed analyst sentiment indicate caution.

The Swiss market closed slightly down, with the SMI index falling 0.11% to 14,581.10. Logitech shares dropped 11% after warning of supply constraints impacting Q3 sales, despite beating Q2 earnings estimates.

Logitech (LOGI) shares fell 11.12% to $99.39 on October 28 due to a supplier disruption expected to reduce Q3 revenue by $70M-$80M. Despite Q2 sales growth of 3% to $1.22B and EPS growth of 4% to $1.51, the supply issue impacts holiday sales. Management expects full production recovery by year-end.

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Logitech (LOGI) shares fell 10.28% to $100.33 despite reporting higher Q2 earnings. Net income rose to $180.04M ($1.25/share) from $170.67M ($1.15/share) YoY. Revenue increased 2.7% to $1.22B. The company expects Q3 revenue of $1.36B-$1.43B.