Logitech (LOGI) stock surges as gross margin expansion drives Q4 beat

Logitech (NASDAQ: LOGI) stock jumped more than 7% in European trading Tuesday after the computer parts maker reported Q4 earnings and revenue that beat consensus estimates.

The company posted earnings per share (EPS) of $0.99, exceeding analyst expectations of $0.68. Revenue for the quarter reached $1.01 billion, marking a 5% year-over-year increase and exceeding the consensus estimate of $957.77 million.

Logitech's non-GAAP operating profit surged 93% to $159 million, while the gross margin increased by 730 basis points year-over-year to 43.6%.

“The Q4 24 consumer demand/ sell through was flat y/y (sell in +5% supported by mild re-stocking) reflecting somewhat muted consumer demand,” UBS analysts led by Joern Iffert commented. However, strong gross margin expansion was a key driver for better-than-expected results, they highlighted.

“After the recent stock price fall, we could expect a positive reaction given the growth
commentary and upside risk to consensus implied by the EBIT outlook statement,” analysts added.

Looking ahead, Logitech aims to grow its sales by 0%-2% to between $4.3 billion and $4.4 billion over the next 12 months.

The company also projects its non-GAAP operating income to be in the range of $685 million to $715 million.

By Vahid Karaahmetovic

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