Logitech Shares Drop After Supply Chain Warning
Logitech International SA shares fell over 12% after the company warned of supply chain disruptions despite beating second-quarter earnings expectations.
Shares of Logitech International SA fell more than 12% in premarket trading on Wednesday following a warning of significant supply chain disruptions. The decline occurred despite the company reporting second-quarter revenue of $1.22 billion and adjusted earnings per share of $1.51, both of which exceeded analyst expectations.
Chief Executive Officer Hanneke Faber noted that the company delivered its eleventh consecutive quarter of growth and launched 19 new products for the holiday quarter. She attributed the topline growth to performance in Gaming, Video Collaboration, and the Americas.
The company disclosed that a semiconductor supplier's manufacturing facility experienced a serious incident, closing in late June and reopening in September. Because current capacity remains below required levels, Logitech expects a negative revenue impact of $70 million to $80 million in the third quarter. The company projects third-quarter revenue between $1.36 billion and $1.43 billion and anticipates full production will resume by the end of the calendar year.
