Logitech Q1 Profit Down, Cuts FY Outlook; Expands Share Buyback Authorization
Logitech International (LOGI) reported that its net income for the first quarter of fiscal year 2023 declined to $100.84 million or $0.61 per share from $186.84 million or $1.09 per share in prior year.
“While macroeconomic challenges affected our performance this quarter, I am encouraged by the continued growth in Video Collaboration, Keyboards & Combos and Pointing Devices as hybrid and return-to-work trends continue to take shape,” said Bracken Darrell, Logitech president and chief executive officer.
Non-GAAP earnings per share for the quarter declined to $0.74, from $1.22 in the same quarter a year ago.
Sales for the first quarter were $1.16 billion, down 12 percent in US dollars and 9 percent in constant currency, compared to the prior year. The performance reflected a challenging macroeconomic environment for the industry and compares against a quarter which grew 66 percent last year in US dollars.
Logitech reduced its fiscal year 2023 outlook to between negative 8 percent and negative 4 percent sales growth in constant currency, and between $650 million and $750 million in non-GAAP operating income. The Company’s previous outlook was between 2 and 4 percent sales growth in constant currency, and $875 million to $925 million in non-GAAP operating income.
Logitech noted that its board has approved an increased share buyback authorization up to $1.5 billion. It expands the company’s current $1 billion, three-year share buyback authorization. Subject to approval from the Swiss Takeover Board, the increase will provide for a total authorization of approximately $800 million remaining for repurchases over the next 12 months of the program ending in July 2023.
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