Logitech Reports Beat-And-Raise Q3, Stock Poised To Open At Multi-Month Highs: Retail Sentiment Lags
CEO Hanneke Fabersaid gaming sales were near pandemic-high levels, benefiting from an “outstanding set of innovations launched ahead of the holidays.”
FollowLogitech International S.A. (LOGI) stock advanced in Wednesday’s pre-market session after the Swiss computer peripheral devices manufacturer reported a beat-and-raise fiscal year 2025 third quarter.
The company reported third-quarter non-GAAP earnings per share (EPS) of $1.59, compared to $1.53 per share in the year-ago period. The bottom-line result exceeded the $1.36 per share consensus estimate, as seen on Yahoo Finance.
Sales rose 7% year-over-year (YoY) to $1.34 billion.
Logitech said its non-GAAP gross margin expanded 90 basis points YoY to 43.2%, and it generated cash flow from operations of $371 million. The company ended the quarter with a cash position of $1.5 billion.
Hanneke Faber, CEO of Logitech, said, “We’re excited to deliver strong, profitable growth once again, in our biggest quarter of the year.”
He noted that gaming sales were near pandemic-high levels, benefiting from an “outstanding set of innovations launched ahead of the holidays.” He added that sales of the premium Pro Gaming and MX portfolios were near records.
Despite anticipated currency headwinds in the fourth quarter, the company raised its full-year 2025 outlook due to strong demand in the third quarter and continued promotional and operational discipline.
Logitech lifted its sales outlook to $4.54 billion - $4.57 billion from $4.39 billion - $4.47 billion and its non-GAAP operating income guidance to $755 million - $770 million from $720 million - $750 million.
The consensus estimate calls for sales of $4.56 billion for the year.
Reviewing the results, Barclays analyst George Wange raised the price target for Logitech stock to $108 from $103 and maintained an ‘Overweight’ rating, TheFly reported. The firm underlined the solid results achieved on the back of healthy demand growth led by gaming.
According to the brokerage, the fourth-quarter guidance is conservative.
LOGI sentiment and message volume January 29, premarket as of 6:39 am ET | Source: Stocktwits
On Stocktwits, sentiment toward Logitech stock deteriorated to ‘bearish’ (42/100) from ‘neutral’ a day ago. Retail chatter was brisk, as reflected by the ‘extremely high’ message volume.
In pre-market trading, Logitech stock climbed 4.73% to $97.36, marking the highest level since July 1. The stock is up about 13% in January.
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