Logitech International SA (NASDAQ:LOGI) stock fell 2.18% (As on July 23, 11:17:25 AM UTC-4, Source: Google Finance) though the company raised its outlook for the year after the company reversed post-pandemic sales declines and posted its second straight quarter of revenue growth. Non-GAAP operating income for the quarter soared 67% to $182 million, added Logitech, which is based in Lausanne, Switzerland and San Jose, California. The performance was driven by lower product costs due to less expensive components as well as lower spending on promotions. Q1 FY25 non-GAAP gross margin was 43.3%, up 430 basis points versus Q1 FY24, driven by lower product cost, as well as lower promotional spending versus the prior year. During the period, Logitech also launched 11 new products, many using artificial intelligence which made them more profitable. Cash flow from operations was $176 million, down 27 percent compared to Q1 of the prior year. The cash balance was of approximately $1.5 billion is an increase of 23% year-over-year, reflecting strong and disciplined management of the business.
Further, Logitech launched MeetUp 2, an AI-powered USB conference camera designed for bring-your-own device (BYOD) and PC-based setups in huddle and small meeting rooms. Logitech introduced a new lineup of Logi for Mac products aimed at enhancing the experience for Mac users while enabling more sustainable lifestyles without compromise.
LOGI in the first quarter of FY 25 has reported the adjusted earnings per share of $1.13, beating the analysts’ estimates for the adjusted earnings per share of 88 cents. The company had reported the adjusted revenue growth of 12 percent to $1.1 billion in the first quarter of FY 25, beating the analysts’ estimates for revenue of $1.025 billion. The Swiss-American company reported sales growth of more than 10% in its devices for computer gamers, keyboards, tablets and headsets during the three months to the end of June. While sales of other product categories grew more slowly, only mobile speakers and webcams reported sales declines. The performance pushed Logitech into a second consecutive quarter of higher group sales, ending a period of lower demand that followed the pandemic-driven sales boom.
The company now expects its full-year sales in the range of $4.34-$4.43 billion, up from a previous projection of $4.3-$4.4 billion, and representing an increase of 1-3% from 2024 levels.
It added that it expects Non-GAAP operating income to be between $700 and $730 million for fiscal year 2025, compared with $685 million-$715 million earlier.