Logitech International SA (NASDAQ:LOGI) stock fell 10.08% (As on January 23, 11:18:09 AM UTC-4, Source: Google Finance) after the company reported a 1% drop in its third-quarter sales, in the computer peripheral maker’s first set of results under newly appointed CEO Hanneke Faber but raised its full-year outlook for Fiscal Year 2024. Logitech has been dealing with customers wrestling with high inflation, and uncertainty among businesses unsure about future economic development and how to equip their offices as they move to hybrid working models.  The company, said its non-GAAP operating income rose to $248 million during the period, up 22 percent compared to the prior year and traditionally the most important quarter of its year. The company grew market share in Keyboards & Combos, Pointing Devices, Gaming Wheels, Tablet Keyboards and Webcams in the quarter.

Moreover, in Q3, our Video Collaboration net sales were down 4% year over year, but up sequentially. Many customers continue to take a cautious approach in equipping conference rooms as they first focus on standardizing their approach to hybrid work and rationalizing their real estate footprint. In fact, the United States office vacancy rate reached a record high at the end of 2023. In the Personal Workspace portfolio, Keyboards & Combos grew 1% year over year and Pointing Devices were flat. Gaming was down 2% year over year, as Console Gaming remained challenged.

LOGI in the third quarter of FY 24 has reported the adjusted earnings per share of $1.55, beating the analysts’ estimates for the adjusted earnings per share of $1.15. The company had reported 1 percent decline in the adjusted revenue growth to $1.26 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $1.24 billion. Cash flow from operations was $443 million, up 58 percent compared to the prior year. The quarter-ending cash balance was $1.41 billion. In the quarter, the Company returned $188 million of cash to shareholders through share repurchases.

The company now expects an annual sales decline of 6%-7% to $4.2 billion-$4.25 billion. It previously forecast full-year sales decline of 9%-12%.

It forecast the non-GAAP operating income to grow by 4%-12%, and come in at $610 million-$660 million. The company had previously expected annual non-GAAP operating income in the range of $525 – $575 million. For the year 2024, the company expects sales of $4.2 billion to $4.25 billion compared to previous guidance of $4.0 billion to $4.15 billion.