Supply chain woes still held back 3Q sales

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

“We might have been even higher,” Darrell stated in an interview on “Mad Cash.” “We misplaced a number of factors of development as a result of we couldn’t get provide in all the things we wished, however we nonetheless had a terrific quarter.”

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

Earlier than the U.S. market opened Tuesday, the maker of pc peripherals reminiscent of 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 forex, up from its prior forecast of flat gross sales development. Logitech’s revised outlook additionally requires between $850 million and $900 million in non-GAAP working revenue, 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 stated, referring to the elevated demand for webcams throughout the Covid pandemic due to widespread adoption of distant and hybrid work preparations.

Whereas Logitech nonetheless anticipates extra individuals shopping for webcams for his or her home-office setups, the CEO stated 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 this point and that’s partly as a result of there’s this large freeze of the pandemic that IT departments and [human resource departments] aren’t actually shifting but,” Darrell stated.

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

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