Logitech International SA (LOGI) shares tumbled 8.53% in after-hours trading, as a strong fiscal first-quarter earnings beat was overshadowed by a disappointing revenue outlook and a semiconductor supplier incident that threatens future sales.
The company reported fiscal Q1 adjusted earnings of $1.85 per share, well above analyst estimates of $1.26, and revenue of $1.23 billion, exceeding the $1.20 billion consensus. However, Logitech issued Q2 revenue guidance of $1.19 billion to $1.22 billion, below the $1.23 billion analysts had expected, raising concerns about growth deceleration.
Adding to the selling pressure, Logitech disclosed that a serious incident at a key semiconductor supplier's manufacturing facility in late June resulted in its temporary closure. The company expects the disruption to create a $20 million headwind in Q2 sales and could impact Q3 net sales by up to $200 million. Meanwhile, analyst downgrades and warnings from Morgan Stanley and Bank of America over weakening PC demand and rising electronics prices further weighed on investor sentiment.