Logitech retains goals after bounce back into black
Logitech, which also makes speakers, webcams and keyboards, has struggled with a weak economic environment in mature markets, posting a loss in the previous quarter and issuing a number of profit warnings over the year.
But it retained full-year guidance on Thursday after sales in the quarter edged up 1 percent to $589 million, just ahead of the $583 million mean estimate in a Reuters poll, as robust demand in Asia offset sluggish markets in the Americas and Europe, the Middle East and Africa.
The company added it was looking to amend its $250 million share buyback program to enable the future repurchase of shares for cancellation.
At 0723 GMT, Logitech shares were 14.2 percent higher, going some way to reversing the near-57 percent lost so far this year.
"The recently revised guidance was confirmed and is clearly achievable in our view. Continued share repurchases and a $250 million amendment to the current program for future share cancellation will lend support to the share price," Vontobel analyst Michael Foeth said.
Logitech sees full-year sales of $2.4 billion and operating income of around $90 million.
The group expects a gross margin for its full year, which ends March 31, of 33 percent, and it is likely to be well above the full-year average in the third and fourth quarters.
(Reporting by Katie Reid; Editing by David Cowell and David Hulmes)