Stock Track | Logitech Plunges 8.53% in After-Hours Trading as Supplier Incident, Weak Q2 Guidance Overshadow Strong Q1 Beat

Stock Track
Jul 29

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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10