Benzinga | Mar 1, 2021 07:02AM EST

Logitech Shares Are Trading Lower Despite Raising FY21 Guidance

Logitech International SA (NASDAQ: LOGI) raised the FY21 outlook for revenue and operating income. It raised the revenue growth forecast to 63% from the previous forecast of 57-60%, and operating income forecast of $1.1 billion compared to $1.05 billion earlier.

* The company expects flat revenue growth in FY22 with an operating income between $750 million and $800 million following its continuing investments in marketing, hardware, and software innovation and go-to-market capabilities and expectations of robust FY21 performance.

* The company's long-term sales growth expectations rose from high-single digits to 8-10%, and gross margin expectations increased from 36-40% to the new range of 39 to 44%. The operating margin forecast has improved from the 11-14% range to 14-17%.

* Logitech CEO Bracken Darrell said the company sees strong growth opportunities in remote work, video collaboration, esports, and digital content creation and will continue to invest behind these secular trends.

* Price action: LOGI stock is down 1.44% at $106.48 in the pre-market session on the last check Monday.