Logitech raises FY outlook after gaming-powered third quarter

Logitech International SA raised its full-year profit outlook on Tuesday, after strong growth in its gaming hardware business helped the computer peripheral and mobile speaker maker beat third-quarter expectations.

The Swiss-US company got a boost from strong sales of its gaming products such as superfast keyboards, headphones, and computer mouse used in multi-player online games like League of Legends and Fortnite, according to a Reuters report.

Logitech’s diverse portfolio drove double-digit growth across gaming, video collaboration, and creativity & productivity, said Chief Executive Officer Bracken Darrell.

The company now expects its fiscal year 2019 non-GAAP operating income to be between $340 million and $345 million, up from its previous guidance of $325 million-$335 million.

Logitech expects sales to grow between 9 per cent and 11 per cent in constant currency during the fiscal year, which runs to the end of March.

The company had raised its guidance earlier in July, following big increases in sales of its products used in video collaboration, gaming, and for computer tablets.

For third quarter ended December 31, net income rose to $112.8 million, beating forecasts of $99.3 million in a Reuters poll of analysts.

Net sales rose 8 per cent to $864.4 million in the quarter, traditionally Logitech’s biggest sales period, beating forecasts of $852 million.

Sales from its gaming business rose 23 per cent to 213.7 million.