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Logitech(LOGI) - 2024 Q4 - Annual Results
2024-04-30 01:04
Exhibit 99.1 Editorial Contacts: Nate Melihercik, Head of Global Investor Relations - ir@logitech.com Nicole Kenyon, Head of Global Corporate and Internal Communications - nkenyon@logitech.com (USA) Ben Starkie, Corporate Communications - +41 (0) 79-292-3499, bstarkie1@logitech.com (Europe) Logitech Announces Q4 and Full Fiscal Year 2024 Results Logitech Returns To Growth With Strong Fourth Quarter; Company Announces FY 2025 Outlook For Q4 Fiscal Year 2024: For Fiscal Year 2024: • Sales were $1.01 billion, ...
Logitech (LOGI) to Report Q4 Earnings: What's in the Offing?
Zacks Investment Research· 2024-04-25 13:51
Logitech International (LOGI) is slated to report fourth-quarter fiscal 2024 results on Apr 29.The Zacks Consensus Estimate for fourth-quarter fiscal 2024 revenues is pegged at $951.9 million, which indicates a marginal decrease of 0.9% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at 61 cents per share, which suggests a robust increase of 22% from the year-ago quarter’s earnings of 50 cents. Earnings estimates for the fourth quarter have remained unchanged in the past 60 days.T ...
Wall Street's Insights Into Key Metrics Ahead of Logitech (LOGI) Q4 Earnings
Zacks Investment Research· 2024-04-24 14:21
Wall Street analysts forecast that Logitech (LOGI) will report quarterly earnings of $0.61 per share in its upcoming release, pointing to a year-over-year increase of 22%. It is anticipated that revenues will amount to $951.94 million, exhibiting a decline of 0.9% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 1.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed the ...
Why Logitech Stock Dropped 6% Today
The Motley Fool· 2024-04-15 16:38
Morgan Stanley says the computer peripherals maker is a sell -- but Morgan Stanley is wrong.Logitech International (LOGI -6.50%) stock was trading down by 6% as of 12:20 p.m. ET Monday after investment bank Morgan Stanley downgraded the computer peripherals maker to underweight (i.e., sell) and predicted the stock would fall to $75 over the next 12 months.That's now the lowest price target assigned to Logitech by any bank on Wall Street, according to StreetInsider.com. What Morgan Stanley said about Logitec ...
Logitech(LOGI) - 2024 Q3 - Quarterly Report
2024-01-24 16:00
Sales Performance - Total sales for the three and nine months ended December 31, 2023 decreased by 1% and 8%, respectively, compared to the same periods in 2022, driven by lower demand across most product categories [121]. - Sales in the Americas region increased by 5% for the three months ended December 31, 2023, while sales in the Asia Pacific and EMEA regions decreased by 8% and 3%, respectively [122]. - Total sales for the three months ended December 31, 2023, decreased by 1% to $1,255,473,000 compared to $1,269,925,000 for the same period in 2022; for the nine months, sales decreased by 8% to $3,286,980,000 from $3,578,741,000 [159]. - Sales in the Americas region increased by 5% for the three months ended December 31, 2023, but decreased by 4% for the nine months; the growth was driven by Keyboards & Combos, Video Collaboration, and Webcams [140]. - EMEA region sales decreased by 3% for the three months and 3% for the nine months, primarily due to declines in Webcams and Video Collaboration, partially offset by increases in Gaming and Pointing Devices [141]. - Asia Pacific region sales decreased by 8% for the three months and 19% for the nine months, driven by declines in Gaming and Video Collaboration [142]. - Sales of Gaming products decreased by 1% for the three months and 7% for the nine months, primarily due to lower sales of gaming keyboards and mice [147]. - Sales of Keyboards & Combos increased by 4% for the three months but decreased by 7% for the nine months, driven by a decrease in cordless keyboards [149]. Financial Performance - Gross margin improved to 42.0% and 40.8% for the three and nine months ended December 31, 2023, an increase of 440 and 240 basis points, respectively, primarily due to lower material and logistics costs [123]. - Net income for the three and nine months ended December 31, 2023 was $244.7 million and $444.5 million, respectively, compared to $140.2 million and $323.1 million for the same periods in 2022 [126]. - Gross profit for the three months ended December 31, 2023, increased by 10% to $526,780,000, while gross margin improved to 42.0%, up from 37.6% in the same period of 2022; for the nine months, gross profit decreased by 3% to $1,341,044,000 [159][160]. - Operating expenses for the three months ended December 31, 2023 were $304.7 million, or 24.3% of sales, compared to $300.5 million, or 23.7% of sales, for the same period in 2022 [124]. - Total operating expenses for the three months ended December 31, 2023, increased to $304,705,000, up from $300,523,000 in the same period of 2022; for the nine months, expenses decreased to $883,925,000 from $956,026,000 [161]. - Research and development expenses increased to 5.8% and 6.4% of sales for the three and nine months ended December 31, 2023, respectively, reflecting continued investment in innovation [166]. - General and administrative expenses increased by $9.9 million and $24.3 million for the three and nine months ended December 31, 2023, respectively, primarily due to higher performance-based compensation [168]. - Interest income for the three months ended December 31, 2023, increased by $8.2 million to $12.8 million compared to $4.7 million in 2022, and for the nine months, it increased by $24.9 million to $34.5 million compared to $9.6 million in 2022, primarily due to rising interest rates [173]. - The provision for income taxes for the three months ended December 31, 2023, was a benefit of $9.6 million, compared to a provision of $42.7 million in 2022, resulting in an effective tax rate of -4.1% versus 23.3% in 2022 [178]. Cash Flow and Working Capital - As of December 31, 2023, cash and cash equivalents totaled $1,412.7 million, up from $1,149.0 million as of March 31, 2023 [182]. - Working capital as of December 31, 2023, was $1,495.0 million, down from $1,555.1 million as of March 31, 2023, driven by reduced inventories and increased accounts payable [183]. - Net cash provided by operating activities for the nine months ended December 31, 2023, was $906.0 million, significantly higher than $317.2 million in 2022 [191]. - Net cash used in investing activities for the nine months ended December 31, 2023, was $59.8 million, primarily for property, plant, and equipment purchases totaling $45.6 million [193]. Shareholder Returns and Commitments - In fiscal year 2024, the company paid a cash dividend of CHF 169.1 million ($182.3 million), an increase from CHF 156.1 million ($158.7 million) in fiscal year 2023 [196]. - The company repurchased 16.7 million shares for an aggregate cost of $1.2 billion under the 2020 share repurchase program, with 2.6 million shares repurchased for $159.1 million in fiscal year 2024 [197]. - A new three-year share repurchase program was approved in June 2023, allowing up to $1.0 billion for share repurchases, with $767.8 million available as of December 31, 2023 [198]. - As of December 31, 2023, the company had non-cancelable purchase commitments of $344.0 million for inventory purchases, with a liability of $33.8 million recorded [204]. - The company has firm purchase commitments of $14.0 million for capital expenditures related to tooling and equipment for new and existing products [205]. Currency Impact - Approximately 52% of sales during the three months ended December 31, 2023, were denominated in currencies other than the U.S. Dollar [138]. - If currency exchange rates had been constant, the constant dollar sales reduction rates would have been 3% and 9% for the three and nine months ended December 31, 2023, respectively [137]. - An adverse 10% foreign currency exchange rate change would have resulted in an adverse effect on income before income taxes of approximately $16.4 million as of December 31, 2023 [215]. - If the U.S. dollar had weakened by 10%, the amount recorded in accumulated other comprehensive income related to foreign exchange contracts would have been approximately $9.1 million lower as of December 31, 2023 [217]. Future Outlook - The company expects challenges from the current macroeconomic environment, including inflation and low consumer confidence, to continue in the near term [116]. - The rapid evolution of generative artificial intelligence presents both growth opportunities and risks for the company as it integrates AI capabilities into its products [119]. - The company has taken steps to mitigate challenges, including reducing operating expenses and aligning inventory with demand [117]. - The company anticipates future working capital requirements may increase to support investments in product innovations and growth opportunities [195]. Efficiency Metrics - Days sales outstanding (DSO) decreased to 49 days for the three months ended December 31, 2023, from 57 days in 2022, indicating improved collection efficiency [186]. - Days payable outstanding (DPO) increased to 65 days for the three months ended December 31, 2023, from 56 days in 2022, reflecting softened demand and higher inventory purchases [188]. - Inventory turnover (ITO) improved to 6.5 times for the three months ended December 31, 2023, compared to 4.0 times in 2022, due to effective inventory management [189].
Logitech(LOGI) - 2024 Q3 - Earnings Call Transcript
2024-01-23 17:47
Logitech International S.A. (NASDAQ:LOGI) Q3 2024 Results Conference Call January 23, 2024 8:30 AM ET Company Participants Nate Melihercik - Head of Global Investor Relations Hanneke Faber - Chief Executive Officer Chuck Boynton - Chief Financial Officer Conference Call Participants Samik Chatterjee - J.P Morgan George Wang - Barclays Asiya Merchant - Citi Erik Woodring - Morgan Stanley Juergen Wagner - Stifel Ananda Baruah - Loop Capital Joern Iffert - UBS Andreas Mueller - ZKB Torsten Sauter - Kepler Cheu ...
Logitech(LOGI) - 2024 Q2 - Quarterly Report
2023-10-25 16:00
Sales Performance - Total sales for the three and six months ended September 30, 2023 decreased by 8% and 12%, respectively, compared to the same periods in 2022, driven by lower demand across most product categories [109]. - Sales in the Asia Pacific region decreased by 21% for the three months and 24% for the six months ended September 30, 2023, while sales in the EMEA region increased by 5% for the three months but decreased by 3% for the six months [110]. - Total sales for the three months ended September 30, 2023, were $1,057,008, a decrease of 8% compared to $1,148,951 in the same period of 2022 [131]. - Gaming sales decreased by 12% for both the three and six months ended September 30, 2023, with revenues of $282,104 and $548,533 respectively [131][133]. - Video Collaboration sales decreased by 15% and 19% for the three and six months ended September 30, 2023, with revenues of $152,389 and $291,735 respectively [131][139]. - Sales of Tablet Accessories increased by 17% and 11% for the three and six months ended September 30, 2023, primarily due to new product introductions [143]. - Sales in the Other category decreased by 35% for both the three and six months ended September 30, 2023, primarily due to a decline in mobile speaker sales [145]. Financial Performance - Gross margin improved to 41.5% for the three months and 40.1% for the six months ended September 30, 2023, reflecting a 330 and 120 basis point increase, respectively, due to cost improvements and reduced reliance on expedited shipping [111]. - Net income for the three and six months ended September 30, 2023 was $137.1 million and $199.8 million, respectively, compared to $82.1 million and $182.9 million for the same periods in 2022 [113]. - Operating expenses for the three months ended September 30, 2023 were $282.0 million, or 26.7% of sales, down from $311.4 million, or 27.1% of sales, in the same period of 2022 [112]. - Operating expenses decreased to $281,983 for the three months ended September 30, 2023, down from $311,379 in the same period of 2022 [148]. - Marketing and selling expenses decreased by $25.7 million for the three months ended September 30, 2023, primarily due to reduced third-party marketing and advertising spend [150]. - Research and development expenses as a percentage of sales increased to 6.5% for the three months ended September 30, 2023, reflecting continued investment in innovation [153]. - Interest income increased by $8.4 million for the three months ended September 30, 2023, totaling $11,856, driven by higher interest rates [160]. - For the three months ended September 30, 2023, total other income (expense), net was $(1,044) thousand, a significant improvement from $(25,397) thousand in the same period of 2022 [161]. - The provision for income taxes for the three months ended September 30, 2023 was $30,334 thousand, with an effective income tax rate of 18.1%, compared to $23,372 thousand and 22.2% in 2022 [165]. Cash Flow and Capital Management - As of September 30, 2023, cash and cash equivalents were $1,163.9 million, up from $1,149.0 million as of March 31, 2023 [166]. - Working capital decreased to $1,405.3 million as of September 30, 2023, down from $1,555.1 million as of March 31, 2023, driven by reduced inventories [167]. - Net cash provided by operating activities for the six months ended September 30, 2023 was $463.1 million, a substantial increase from $37.3 million in the same period of 2022 [173]. - The company repurchased 2.6 million shares for an aggregate cost of $159.1 million during the six months ended September 30, 2023, under the 2020 share repurchase program [179]. - The new three-year share repurchase program approved in June 2023 allows for up to $1.0 billion in share repurchases, with $940.0 million available as of September 30, 2023 [180]. Market Outlook and Challenges - The company anticipates continued challenges in the near term due to macroeconomic factors, including inflation and low consumer confidence, impacting demand for products [106]. - The company is focusing on reducing operating expenses and aligning inventory with demand to mitigate the impact of current market conditions [107]. - The company expects to benefit from long-term trends such as hybrid work and the rise of digital content creation, which may drive future product demand [105]. Inventory and Accounts Receivable Management - Days sales in accounts receivable (DSO) improved to 56 days for the three months ended September 30, 2023, down from 61 days in the same period of 2022 [170]. - Inventory turnover (ITO) increased to 4.6 times for the three months ended September 30, 2023, compared to 3.2 times in the same period of 2022, indicating improved inventory management [171]. - As of September 30, 2023, the company had non-cancelable purchase commitments of $391.5 million for inventory purchases, with a liability of $33.2 million recorded in accrued and other current liabilities [186]. - The company has firm purchase commitments of $10.7 million for capital expenditures related to tooling and equipment for new and existing products [187]. Foreign Exchange Exposure - Approximately 50% of sales during the three months ended September 30, 2023 were denominated in currencies other than the U.S. Dollar, indicating exposure to foreign exchange fluctuations [125]. - Approximately 50% of the company's sales for the three months ended September 30, 2023, were in non-U.S. denominated currencies, with 23% denominated in Euro [195]. - An adverse 10% foreign currency exchange rate change would have resulted in an adverse effect on income before income taxes of approximately $10.9 million as of September 30, 2023 [197]. - If the U.S. dollar had weakened by 10%, the amount recorded in accumulated other comprehensive income (AOCI) related to foreign exchange contracts would have been approximately $11.9 million lower as of September 30, 2023 [199]. - The company experienced a $10.8 million loss from currency exchange rate effects on cash and cash equivalents for the six months ended September 30, 2023 [176].
Logitech(LOGI) - 2024 Q2 - Earnings Call Transcript
2023-10-24 18:28
Financial Data and Key Metrics Changes - The company reported a revenue decline of 9% year-over-year, but there was year-over-year growth in pointing devices, primarily mice [29][66] - Gross margins expanded to 42%, driven by cost improvements and lower promotions, with expectations for Q3 margins to be around 38% to 39% [65][66] - Operating income was $183 million, better than expectations due to improved demand and strong gross margins [66] Business Line Data and Key Metrics Changes - The gaming segment faced challenges due to an aged product portfolio, but new products are expected to launch soon [4] - Video collaboration solutions generated $152 million in sales, indicating strong market presence despite cautious corporate spending [37][66] - The consumer segment remained strong, particularly in Europe, while enterprise sales showed signs of recovery [29][34] Market Data and Key Metrics Changes - Europe showed a strong performance with a 5% year-over-year increase in U.S. dollars, while the overall business was down 9% [29][122] - The U.S. market performance was described as "so-so," and Asia continued to lag behind [29][34] Company Strategy and Development Direction - The company is focused on capital allocation, returning $276 million to shareholders through dividends and share repurchases [66] - There is a commitment to innovation with 16 new product launches ahead of the holiday season, including AI-powered products [63][66] - The company sees AI as a major strategic opportunity and plans to deliver solutions that bridge human and machine interactions [63] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about slowing the rate of decline and eventually returning to growth, raising the full-year revenue outlook to $4 billion to $4.15 billion [47][66] - The company is navigating a cautious corporate spending environment due to high interest rates and global uncertainties [37][66] Other Important Information - The company improved inventory turns from 3.2 to 4.6 year-over-year, nearing the target of five turns [46] - The CEO search is ongoing, with progress being made towards finalizing a decision [44] Q&A Session Summary Question: What are the drivers of stronger demand throughout the quarter? - Management indicated that the consumer segment has been strong, particularly in pointing devices, while enterprise sales are showing recovery signs [29][37] Question: Can you provide more details on the performance in Europe? - Europe performed well across both consumer and enterprise segments, with specific strengths in gaming and video products [29][34][122] Question: What is the outlook for the gaming segment? - The gaming segment is expected to benefit from new product launches, although the current portfolio is aged [4][66] Question: How does the company view the current operating environment? - Management noted that companies are being cautious with spending, but they believe the demand for video conferencing solutions will return as hybrid work models stabilize [37][66] Question: What are the expectations for gross margins moving forward? - Gross margins are expected to be pressured in Q3 due to promotions, but the company aims to maintain a long-term target of 39% to 44% [65][66]
Logitech(LOGI) - 2024 Q2 - Earnings Call Presentation
2023-10-24 13:24
logitech Forward-Looking Statements A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Logitech's periodic filings with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2023, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, and our subsequent reports filed with the SEC, available at ...
Logitech(LOGI) - 2024 Q1 - Earnings Call Presentation
2023-08-06 17:36
July 24, 2023 Non-GAAP Financial Measures Q1 Fiscal Year 2024 Financial Results This presentation includes forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding our preliminary financial results for the three months ended June, 2023; full year and first half Fiscal Year 2024 outlook for sales and non-GAAP operating income; growth expectations; non-GAAP gross margin; business strategy, including but not limited to design led eng ...