ZURICH, Jan 27 (Reuters) – Logitech International reported its best quarterly earnings since the pandemic on Tuesday, as the computer peripherals maker was boosted by higher sales of video conferencing equipment and educational spending.
The U.S.-Swiss maker of computer mice and keyboards said its sales rose 6% year-over-year to $1.42 billion for the three months ended December 31. That was slightly ahead of the analysts’ consensus estimate of $1.41 billion, as compiled by Visible Alpha.
Its adjusted operating income jumped 17% to $312 million, beating the consensus estimate of $287 million.
The operating income figure was the best quarterly performance for Logitech excluding its 2021 and 2022 financial years, when the pandemic-induced lockdowns fuelled a surge in demand for home and remote-work equipment.
Much of the improvement was driven by a big increase in sales of keyboards and covers for tablet computers to schools, and its video collaboration equipment — webcams, speakers and microphones used in remote business meetings.
Computer mice and keyboards also did well.
The company also raised prices by around 10% in the United States last year to offset the impact of tariffs, and reduced costs, which boosted profitability.
Growth was broad-based across categories, regions and both consumer and business channels, Chief Executive Hanneke Faber said in a statement.
“With the exception of pandemic peaks, we drove record operating income despite tariff headwinds,” said Faber.
Logitech, which is based in Lausanne, Switzerland, and San Jose, California, has recently been shifting production lines from China to lessen the impact of U.S. duties, while its plant in Suzhou will continue to supply China and the rest of the world.
The company said it had completed its plan to reduce the proportion of its U.S.-bound products that are made in China from 40% to less than 10%.
For the fourth quarter, which runs to the end of March, Logitech said it expects sales to increase 6%-8% to $1.07 billion to $1.09 billion, and sees its adjusted operating income in the range of $155 million to $165 million.
(Reporting by John Revill; Editing by Shilpi Majumdar and Alan Barona)
Comments