Logitech International, a maker of peripherals for personal computers and mobile devices, beat analyst estimates for its fiscal third quarter. But sales shrank for the ninth consecutive quarter on a year-over-year basis. Logitech stock fell Tuesday on the news.
Late Monday, Logitech said it earned an adjusted $1.53 a share on sales of $1.26 billion in the quarter ended Dec. 31. Analysts polled by FactSet had expected earnings of $1.14 a share on sales of $1.25 billion. On a year-over-year basis, Logitech earnings rose 34% while sales declined 1%.
Its guidance implied fourth-quarter sales of $969 million, up 1% and matching analyst expectations.
"We delivered solid results in our third quarter," Chief Executive Hanneke Faber said in a news release. "But we will not be satisfied until we return to top-line growth."
Logitech Stock Falls After Report
On the stock market today, Logitech stock sank 11.5% to close at 84.86. On Monday, Logitech hit a two-year high of 96.66.
Logitech stock reached its all-time high of 140.14 in June 2021 during the Covid pandemic when customers bought gear for their home offices.
Of the company's eight product categories, only two increased sales on a year-over-year basis in the December quarter: keyboards and combos, and pointing devices. Other major categories, such as gaming and video collaboration, posted declines.
Logitech stock ranks second out of 14 stocks in IBD's Computer Hardware and Peripherals industry group, according to IBD Stock Checkup. LOGI stock has an IBD Composite Rating of 91 out of 99.
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