Logitech: Buying Opportunity in Correction?

Last Updated: 7. Februar 2024By

You are probably familiar with the name Logitech. That’s because Logitech International S.A. is a Swiss company that specializes in designing and manufacturing computer products and software. Their product range includes mice, keyboards, webcams, PC headsets, remote controls, and other accessories for PCs and gaming.

Quarterly profit rises by 34%. In the third quarter, the company earned $1.53 per share, compared to $1.14 per share the year before. Analysts had expected $1.17 per share. Net sales were $1.26 billion, compared to $1.27 billion the previous year. Analysts had predicted $1.25 billion.

Exceeding analyst estimates. „Our results for the third quarter show that we continue to focus on our operational discipline,“ said CFO Chuck Boynton. „While sales declined by 3% in constant currency, we achieved a strong gross margin of 42.3% and increased profitability.“

Improved forecast for the full year. For the 2023/24 fiscal year, the tech giant expects sales of $4.2 to $4.25 billion, which would only be a decline in sales in dollars of 6% to 7%. Adjusted earnings before interest and taxes are now expected to be between $610 and $660 million, which would represent an increase of 4% to 12%. Is this a good time to invest in Logitech?

Correction after quarterly results – Is now the time to buy? Conclusion: The quarterly results were satisfactory, but the stock has fallen since the announcement, as you can see from the chart. Analyst opinions are divided. 6 out of 17 analysts recommend buying, 9 recommend holding, and 2 recommend selling. And indeed, the price target range of $61 to $109 is quite wide. With a P/E ratio of over 30, the Swiss tech stock is no longer cheap. However, as an investor, you can benefit from a dividend yield of 2.27%.