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(Recovery with badyst, market reaction)
By John Revill
April 30 (Reuters) – Logitech International SA shares fell by nearly 9 percent on Tuesday as investors took advantage of the gains made by the computer device maker this year and the success of providing fast keyboards and mice at online game players like Fortnite.
The traders said the sale followed Logitech's shares, up 40 percent year-to-date, instead of the latest earnings and sales that were roughly in line with expectations.
Swiss-US The company, which also manufactures mobile speakers and video-conferencing equipment, announced a 22% increase in profits in the fourth quarter to $ 42.1 million. Revenues increased 5.4% to $ 624.3 million, which is in line with badysts' estimates.
The unexpected departure of chief financial officer Vincent Pilette "to play a management role in another company" and the fact that Logitech did not improve its forecasts for the next financial year could also have played a role, the traders said.
"The numbers are fundamentally correct, but Logitech's shares have risen sharply this year, so there is now some consolidation," said a Zurich trader.
Pilette's departure after six years at Logitech could also be a contributing factor, said the trader.
"The departure of the CFO is a secondary reason, even if everyone is replaceable today," he said.
At 08:30 GMT, Logitech shares were down 3.7% to 40.81 Swiss francs. The stock started 2019 at 30.92 francs.
For the full year, Logitech sales increased 10% as currency fluctuations were removed to $ 2.79 billion.
"We recorded our third consecutive year of double-digit constant currency growth and our highest year-over-year revenue," said Chief Executive Officer Bracken Darrell, who led the turnaround of the society.
Darrell described Pilette, who was popular among the investment community and who invested in Logitech before joining the company at Electronics For Imaging as a "great partner".
Nate Olmstead, chief financial officer, will be acting chief financial officer when Pilette leaves at the end of May.
Logitech said it hopes to increase sales in the mid-to-high range of the numbers and increase its operating profit from $ 375 million to $ 375 million in fiscal year 2020, confirming the outlook it has March.
During the 2019 fiscal year, which ended on March 31, Logitech increased its forecast twice.
Analysts have qualified the numbers as positive with strong profit margins.
"We regret the departure of Vincent Pilette and it will be important for his successor to follow the same discipline to apply the economic model," said Michael Foeth at Banque Vontobel. (Report by John Revill in Zurich by Rishika Chatterjee in Bengaluru, edited by Bill Rigby and Michael Shields)
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