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Logitech sees pandemic-driven growth continuing, hikes 2021 guidance

·2-min read
Logitech keyboards are seen in the computer shop in Zenica

(Reuters) - Computer goods maker Logitech International increased its 2021 guidance on Monday and issued a 2022 forecast, saying growth trends in remote work, video collaboration, esports and digital content creation would continue beyond the 2021 boom.

The company's Switzerland-listed shares were up 3.2% at 0850 GMT after it raised its 2021 sales growth forecast to about 63% in constant currencies, up from the 57%-60% range it previously expected. Logitech said sales for fiscal 2022, measured in constant currency terms, would be flat to plus or minus 5%.

"Several years ago, we set out to become a design company and positioned our business against long-term growth trends in remote work, video collaboration, esports, and digital content creation. These trends have accelerated over the course of the fiscal year and have seen a coming of age for Logitech," Chief Executive Bracken Darrell said in a statement.

Operating income for fiscal 2022, measured under non-Generally Accepted Accounting Principles (non-GAAP), is expected to be $750 million to $800 million, the Swiss-U.S. company said, down from the $1.1 billion it now expects for fiscal 2021 and a fraction up from a previous estimate of $1.05 billion.

"The outlook increase is particularly surprising in the longer term, as it is relatively substantial," Zuercher Kantonalbank said in a note, adding the guidance implied the company could benefit from various growth drivers even after the pandemic.

In January, Logitech reported a more than three-fold jump in quarterly adjusted operating income, benefiting from the pandemic-driven boost in demand for work-from-home products and gaming accessories.

The company also said on Monday its expectations of long-term sales growth in constant currency had increased to 8% to 10%, up from high-single digits and its non-GAAP operating margin target had improved to between 14% and 17%, up from 11% to 14%.

(Reporting by Bartosz Dabrowski in Gdansk and Kanishka Singh in Bengaluru; Editing by Kenneth Maxwell and Edmund Blair)