Logitech International S.A. (NASDAQ: LOGI) shares are shooting higher by around 10% after it reported Q2 FY24 results.
Revenue fell 8% Y/Y (-9% Y/Y in constant currencies) to $1.06 billion, exceeding the consensus of $968.4 million.
By category, sales in Video Collaboration fell by 15% Y/Y, Gaming decreased by 12%, Keyboards & Combos sales declined by 3% Y/Y, while Pointing Devices were up by 3% Y/Y.
Adjusted gross margin expanded 340 bps Y/Y to 42.0%, led by cost improvement, less reliance on expedite shipping, and a decline in promotions.
Adjusted operating income grew 17% Y/Y to $183 million in the quarter.
Adjusted EPS of $1.09 beat the consensus of $0.56.
Logitech held $1.16 billion in cash and equivalents and generated $223 million in operating cash flow.
In Q2 FY24, Logitech returned $276 million to shareholders, including share repurchases of $94 million.
FY24 Outlook: The company raised guidance for sales to $4.0 billion – $4.15 billion (vs. consensus: $4.02 billion) from $3.8 billion – $4.0 billion and adjusted operating income to $525 million – $575 million (-11% to -2% Y/Y) from $400 million – $500 million.
CEO Search: Over the last four months, the board of directors, led by Wendy Becker, is conducting a global CEO search across industries and geographies and is moving closer to finalizing a decision.
Also Read: Impressive Logitech Performance Spurs Analysts To Increase Price Targets, Despite Lowered Future Revenue Estimates
Price Action: LOGI shares are up 10.86% at $75.77 premarket on the last check Tuesday.
