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Logitech Shares Surge 9% on Q3 Beat, Outlook Upgrade

Wesley ParkWednesday, Jan 29, 2025 5:25 am ET

4min read

Logitech International (LOGI) shares surged 9% in after-hours trading on Tuesday, following the company's strong third-quarter fiscal year 2025 results and an upgrade to its full-year outlook. The computer parts maker reported revenue of $1.34 billion, up 7% year-over-year, and adjusted earnings per share (EPS) of $1.59, beating analyst estimates of $1.36 and $1.40, respectively.

Logitech's gaming segment was a significant driver of growth, with sales near pandemic-high levels thanks to a series of innovative product launches ahead of the holidays. The company delivered near-record sales in its premium Pro Gaming and MX portfolios, indicating strong demand for high-end gaming products. Additionally, Logitech for Business made excellent progress, further diversifying the company's revenue streams.

Following the strong quarter, Logitech raised its full-year 2025 outlook, now projecting sales between $4.54-4.57 billion (5.4-6.4% growth) and non-GAAP operating income of $755-770 million (8-10% growth). The company's raised outlook reflects management's confidence in sustainable growth and the company's ability to navigate the post-pandemic normalization while maintaining growth momentum in key growth categories.

In an interview with Benzinga, Logitech CEO Hanneke Faber attributed the company's strong performance to its strategic priorities, including superior innovation, effective marketing campaigns, and excellent holiday retail execution. Faber also noted the company's ability to maintain growth while expanding margins, indicating strong competitive positioning.

Logitech's strong Q3 performance and raised outlook suggest that the company is successfully navigating the post-pandemic normalization while maintaining growth momentum. The company's execution in premium segments and business solutions indicates potential for continued margin expansion and market share gains in key growth categories. As such, Logitech's shares may continue to rise as investors recognize the company's strong fundamentals and growth prospects.

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