Logitech beats forecasts with strong Q1

Logitech International today announced financial results for the first quarter of Fiscal Year 2018. The Q1 sales were $530 million, up 13% in constant currency compared to Q1 of the prior year, beating forecasts of $512 million in a Reuters poll. Logitech raised its outlook 2018 to 10% to 12% sales growth. 

Net profit increased to $37 million, ahead of estimates of $26 million. The Swiss-U.S. company said it now expects operating income of $260 million to $270 million, up from its previous view of $250-260 million.

“We’re off to a strong start,” said Bracken Darrell, Logitech president and chief executive officer. “Our innovative and diverse portfolio is delivering, with growth and profitability exceeding expectations this quarter. Our growth was broad-based — we grew double-digits in constant currency across all three regions. Looking out to the rest of the year, the strength of our innovation program combined with the expected closing of the ASTRO Gaming acquisition, give us the confidence to raise our FY 2018 outlook.”

Vincent Pilette, Logitech chief financial officer, said, “We delivered a strong financial performance during this first quarter of the fiscal year, with sales up 13% and profitability up 14%. Q1’s healthy gross margin — up 140 basis points compared to last year — allows us to continue our investment in numerous growth opportunities to build an exciting future.”