Logitech Posts Higher Q3 Earnings, Raises Profit Forecast

Shares of

surged more than 8.8% in pre-market trading after the company reported higher third-quarter earnings and raised its profit forecast for fiscal 2015. Logitech's quarterly net profit surged to $62.8 million, or $0.38 per share, versus a year-ago profit of $47.9 million, or $0.29 per share. However, analysts projected a profit of $43 million. Non-GAAP operating income came in at $76 million, or $0.41 per share. Its sales rose to $634.2 million from $628.7 million. Excluding the unfavorable impact of currency exchange rates, the company's retail sales surged 5% in the quarter. During the quarter, cash flow from operations was $76 million. Bracken P. Darrell, Logitech president and chief executive officer. “We almost doubled sales in Mobile Speakers and also posted healthy growth in PC Gaming and Video Collaboration. Overall, despite the U.S. dollar's strengthening, our retail sales and profitability continued to grow and we generated robust cash flow. Based on these better-than-expected results and the strength of our product offerings, we have increased our full-year outlook for operating income for the second time this fiscal year.” For fiscal 2015, Logitech now projects non-GAAP operating income of about $185 million, versus earlier forecast of around $170 million. It now expects sales of about $2.11 billion, versus around $2.16 billion. Logitech shares jumped 8.87% to $15.34 in pre-market trading.