(Reuters) – Logitech International SA shares fell almost 9 % on Tuesday as investors cashed in on the pc peripheral maker’s gains this yr and success offering quick keyboards and mice for gamers of on-line video games like Fortnite.
FILE PHOTO: Chief Financial Officer, Vincent Pilette, of the pc peripherals maker Logitech addresses a information convention in Zurich, Switzerland March 6, 2019. REUTERS/Arnd Wiegmann
Traders stated the sell-off adopted Logitech shares’ gaining 40 % because the begin of the yr, slightly than the most recent earnings and gross sales which had been roughly according to forecasts.
The Swiss-U.S. firm, which additionally makes cell audio system and video conferencing gear, reported a 22 % improve in fourth-quarter revenue to $42.1 million. Revenue elevated 5.four % to $624.three million, matching analyst estimates.
The shock departure of Chief Financial Officer Vincent Pilette “to pursue a senior management role at another company” and Logitech’s not upgrading its steering for its subsequent monetary yr may even have performed a job, merchants stated.
“The figures are fundamentally OK, but Logitech’s shares have risen very strongly this year, so there is now some consolidation,” one Zurich-based dealer stated.
Pilette’s departure, after six years at Logitech, may be a contributory issue, the dealer stated.
“The CFO leaving is a secondary reason, although everyone is replaceable these days,” he stated.
At 0830 GMT Logitech shares had been down three.7 % to 40.81 Swiss francs. The inventory began 2019 at 30.92 francs.
For the yr as a complete, Logitech gross sales elevated 10 %, when forex swings had been eliminated, to $2.79 billion.
“We’ve delivered our third consecutive year of double-digit growth in constant currency and our highest fiscal year sales ever,” stated Chief Executive Bracken Darrell, who has led the turnaround of the corporate.
Darrell described Pilette, who was in style among the many funding neighborhood and invested in Logitech earlier than becoming a member of the corporate from Electronics For Imaging, as a “terrific partner”.
Nate Olmstead, head of finance, might be interim chief monetary officer when Pilette leaves on the finish of May.
Logitech stated it anticipated to extend its gross sales within the mid- to excessive single-digit vary and improve its working revenue to $375 million to $385 million throughout its 2020 monetary yr, confirming the outlook it gave in March.
During the 2019 enterprise yr, which ended on March 31, Logitech had twice elevated its steering.
Analysts described the figures as constructive with robust revenue margins.
“We regret Vincent Pilette’s departure and it will be important that his successor pursues the same discipline in executing on the business model,” stated Michael Foeth at Bank Vontobel.
Reporting John Revill in Zurich by Rishika Chatterjee in Bengaluru; Editing by Bill Rigby and Michael Shields