Logitech (LOGI.US) stock dropped more than 16.0% on Thursday after the Swiss-American PC equipment maker reported disappointing quarterly earnings and cut its financial guidance as consumer and business demand for computers and related equipment is decreasing.
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Preliminary GAAP operating income in Q3 plunged approximately 35% YoY to between $171 million and $176 million. Revenue tumbled 22% to between $1.26 billion and $1.27 billion.
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For the current quarter the company forecasts revenue decline in the region between 13% to 15%, well above previous estimates of a 4% to 8% drop. Operating income is projected to fall more than 30%.
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CEO Bracken Darrell said poor results reflected "challenging macroeconomic conditions including a slowdown in sales to enterprise customers in the quarter."
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Logitech also warned that Covid-19 outbreaks in China still threaten its supply chain.
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Following the latest announcements, Wedbush analysts downgraded Logitech to "neutral" from "outperform," and slashed its price target to $60 from $70.
Logitech (LOGI.US) stock is trading over 60.0% below its highs from June 2021 and recent figures again ignited selling pressure. Stock launched today’s session with a massive bearish price gap and is currently approaching the key resistance zone around $55.30 which is marked with previous price reactions, 200 SMA (red line) and 78.6% Fibonacci retracement of the upward wave launched in March 2020. In case of a break lower, downward move may deepen towards 2022 lows around $42.00. Source: xStation5
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