Logitech International (LOGI) stock jumped after the PC equipment provider announced a surge in earnings and upped its estimate based on decreased expenditures.
The manufacturer of keyboards and other computer accessories reported profits per share (EPS) of $1.09 in the second quarter of fiscal 2024, 30% more than a year earlier and nearly double what experts predicted. Sales fell 8% to $1.06 billion, but were still more than expected.
Since the COVID-19 boom, when lockdowns compelled individuals to work and attend school from home, demand for computer accessories has dwindled. Interim CEO Guy Gecht, on the other hand, stated that the business “made great progress toward a return to growth and exceeded our pre-pandemic profit levels.” CFO Chuck Boyton added that Logitech’s “focus on cost discipline with a customer-first mindset is paying off, with share growth in key categories.”
The business now expects full-year sales to be in the $4 billion to $4.15 billion range, up from its earlier forecast of $3.80 billion to $4 billion. It anticipates operating income of $525 million to $575 million, up from a previous projection of $400 million to $500 million.
Logitech stated that during the past four months, the board has conducted a global search for a new CEO to replace Bracken Darrell, who departed the company in June after ten years as CEO to “pursue another opportunity.” Logitech stated that it is “moving closer to finalizing a decision.”
Following the news, Logitech shares rose more than 10% in early trading on Tuesday, reaching their highest level in a year and a half.