On July 29, Logitech International SA fell 10.97% in pre-market trading, trading at $99.36/share, with turnover of $95,900. The decline was triggered by weaker-than-expected Q2 revenue guidance despite a strong Q1 earnings beat.
Logitech reported FY2027 Q1 adjusted EPS of $1.85, beating the consensus estimate of $1.22 by 51.6% and representing a 46.8% year-over-year increase. Revenue came in at $1.227 billion, up 7% year-over-year and above the $1.204 billion estimate. Net income attributable to shareholders surged 61.4% to $236 million, with gross margin expanding 7.8 percentage points to 49.5%. However, the company issued Q2 revenue guidance of $1.19 billion to $1.22 billion, falling short of the analyst consensus of $1.23 billion, sparking concerns over slowing growth momentum.
Prior to the report, Morgan Stanley had flagged over 5% downside risk to revenue from declining PC demand, while Bank of America downgraded the stock to underperform with an $86 target, citing expected demand deterioration as PC and gaming system prices rise. The strong quarterly performance failed to alleviate forward-looking concerns, resulting in heavy selling pressure.
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