Tuesday, May 17, 2022
HomeBusinessProvide chain woes nonetheless held again 3Q gross sales

Provide chain woes nonetheless held again 3Q gross sales


Logitech‘s better-than-expected quarterly outcomes could have been stronger with out the continuing provide chain challenges, CEO Bracken Darrell advised CNBC’s Jim Cramer on Tuesday.

“We may have been even higher,” Darrell mentioned in an interview on “Mad Money.” “We misplaced a number of factors of progress as a result of we could not get provide in every thing we needed, however we nonetheless had a terrific quarter.”

Logitech’s Nasdaq-listed shares jumped 4.47% Tuesday in what was an otherwise tough day for the technology-focused Nasdaq Composite, which fell 2.3%. Buyers cheered the Swiss-American firm’s third-quarter results and raised full-year steering for fiscal 2022.

Earlier than the U.S. market opened Tuesday, the maker of pc peripherals akin to keyboards, webcams and mice reported $1.63 billion in 3Q income, higher than the $1.46 billion analysts anticipated, based on FactSet.

Logitech now expects full-year gross sales to rise between 2% and 5% in fixed foreign money, up from its prior forecast of flat gross sales progress. Logitech’s revised outlook additionally requires between $850 million and $900 million in non-GAAP working earnings, a rise from between $800 million and $850 million.

“We’re so enthusiastic about each space of our enterprise together with the idea of video in all places,” Darrell mentioned, referring to the elevated demand for webcams throughout the Covid pandemic because of widespread adoption of distant and hybrid work preparations.

Whereas Logitech nonetheless anticipates extra folks shopping for webcams for his or her home-office setups, the CEO mentioned the corporate expects demand from enterprises to be notably sturdy as convention rooms see know-how upgrades.

“Solely about 10% or 11% of all of the rooms on this planet are video-enabled to date and that is partly as a result of there’s this large freeze of the pandemic that IT departments and [human resource departments] aren’t actually transferring but,” Darrell mentioned.

“It is simply beginning,” he continued. “I imply, we grew double digits in our convention room cameras now, in order that’s forward of us. We have simply acquired quite a lot of progress forward in our video enterprise.”

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