By Dhirendra Tripathi
Investing.com – Logitech stock (NASDAQ: LOGI ) rose 2.5% on Tuesday as the company raised its current-year outlook following a beat in the December quarter.
Sales fell but were ahead of estimates as demand for its keyboards, mice, PC gaming and console headsets remained strong.
According to Reuters, Chief Executive Bracken Darrell said the company is now seeing companies examine how their offices will look in future, when people use a mix of home and on-site locations.
"I don't think we are going to go back to offices like we did before. But we are going to need multiple places to work and people are going to need video in those offices because a lot of us are going to be at home, calling in."
That optimism led the company to raise its current-year revenue growth outlook to 2% to 5% in constant currency with adjusted operating income coming in between $850 million and $900 million.
Just last October, it had confirmed its outlook of flat sales growth, plus or minus 5%.
The company’s third quarter was set up for tough comparisons given the pandemic drove sales of those devices to record highs in the same period last year.
Sales of keyboards and combos were up 29%, its ninth consecutive quarter of double digit growth. PC webcam sales fell 12% but the company still managed to grow its market share. Logitech said it is focused on persuading more customers to buy its external webcams that it claims provide a better experience.
Some categories such as mobile speakers, audio and wearables and smart home declined as the company reviews those businesses, including shutting some of them.
Adjusted operating margin took a hit of 4.6 points to 40.6% owing to higher freight costs. Sales fell 35% year-on-year to $1.6 billion while profit per share was $1.55 down 37%.
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