Logitech International SA (NASDAQ:LOGI) stock rose 2.53% (As on Jan 25, 11:46:04 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22 with strong growth in Pointing Devices, Keyboards & Combos and Gaming, and share gains in the majority of key categories and raised annual guidance for both sales and profitability. Category sales in US dollars grew 29 percent in Keyboards & Combos and 8 percent in Pointing Devices and Gaming, compared to Q3 of the prior year. Video Collaboration grew 24 percent quarter over quarter and was down 2 percent compared to Q3 of the prior year in which sales grew more than 200 percent. PC Webcams sales decreased 12% in Q3, from record sales levels a year ago, and grew market share by more than 10 points over the last three months. Gaming delivered strong 8% growth in Q3, against 73% growth last year. Sales in the Tablet and Other Accessories category declined 37% in Q3. Mobile Speaker sales declined 22% in Q3.

Further, Non-GAAP operating income declined 37 percent to $302 million, compared to $476 million in the same quarter a year ago. This reflects the Company’s planned, strategic investments in marketing and innovation to drive future growth. Non-GAAP operating income almost doubled versus two years ago. The non-GAAP gross margin contracted 460 bps to 40.6%. Cash flow from operations was $377 million. The Company returned $116 million of cash to shareholders through share repurchases. Year to date, the Company has returned a total of $450 million to shareholders through dividends and share repurchases, more than twice the amount over the same period last year. The company held $1.4 billion in cash and equivalents.

LOGI in the third quarter of FY 22 has reported the adjusted earnings per share of $1.55, beating the analysts’ estimates for the adjusted earnings per share of $1.31. The company had reported 2 percent fall in the adjusted revenue to $1.63 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $1.27 billion.

Logitech raised its FY22 outlook to 2% – 5% sales growth in constant currency and $850 million – $900 million in non-GAAP operating income. The company’s previous outlook was flat sales growth in constant currency, plus or minus 5%, and $800 million – $850 million in non-GAAP operating income.