Logitech shares jump on surprise guidance, as demand stirs for computer products

By Barbara Kollmeyer

Shares of Logitech International SA jumped on Tuesday after the Swiss computer and gaming equipment maker pushed out an upbeat forecast for 2025 after a strong quarter.

Logitech (CH:LOGN) (LOGI) stock rose over 5% in Zurich, with a similar gain for U.S. listed shares.

Reporting "broad-based" growth across all of its regions and categories, the mouse-maker reported a 5% gain in fiscal fourth-quarter sales to $1.01 billion. Adjusted earnings per share came in at $0.99, a 98% gain on the prior year, and net income was four times higher at $167.6 million.

"We start fiscal year 2025 with a focus on sustainable, profitable growth supported by several long-term trends that present opportunities for our business: new ways of working, gaming, and transformational AI," said Hanneke Faber, Logitech's chief executive officer, in a statement.

Earlier this month, Logitech announced a free AI upgrade for users of its keyboards and mice, rolling out the Logi Ai Prompt Builder software window that lets users seamlessly connect to chatbots. It also launched a new wireless mouse with a dedicated AI prompt button.

Logitech's outlook stirred the most excitement among analysts, predicting fiscal 2025 sales of $4.3- $4.4 billion, flat to up 2% and adjusted income growth that will range between a decline and rise of 2%.

"A rather soft guidance was expected, given ongoing consumer demand weakness over the past few but LOGN sees a flattish year 2025, post a better finish to 2024. Hence, the outlook is a positive surprisetoday," said Juergen Wagner, analyst at Stifel.

Wagner said gaming and video is a focus for investors with gaming up 8% annually and video stabilizing with a 2% gain, while mice sales rose 6% and keyboards up 15%.

"The company also highlighted some ongoing restocking in H1 25E which we see as a sign demand is improving," added Joern Iffert and Marti Queral Ferre, analysts at UBS.

-Barbara Kollmeyer

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04-30-24 0841ET

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