Logitech reports modest Q2 growth but warns of supply‑related hit to Q3 sales and margins
Logitech posted Q2 sales of $1.22 billion, up 3% in constant currency, and adjusted earnings per share of $1.51, a 4% increase. The company guided holiday‑quarter (Q3) revenue to $1.36 billion‑$1.43 billion, reflecting a $70 million‑$80 million impact from a chip‑supplier plant incident, and expects gross margin to fall to 41%‑42%. The guidance led to an 11% drop in the stock price despite the earnings beat.
Why it matters
Investors see the share price fall 11% as the market prices a one‑quarter supply issue as a longer‑term slowdown. The lower Q3 margin outlook and the $70‑$80 million hit compress profitability for the upcoming quarter.
Key facts
- 1Q2 sales rose 3% in constant currency to $1.22 billion. finance.yahoo.com
- 2Adjusted EPS increased 4% to $1.51 per share. finance.yahoo.com
- 3Non‑GAAP gross margin for Q2 climbed 1.4 points to 45.2%. finance.yahoo.com
- 4Q3 (holiday‑quarter) revenue is guided to $1.36 billion‑$1.43 billion in constant currency. finance.yahoo.com
- 5The Q3 guidance includes a $70 million‑$80 million hit from a chip‑supplier plant incident. finance.yahoo.com
- 6Q3 gross margin is expected to be 41%‑42%, down about 2 points year‑over‑year. finance.yahoo.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.