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Logitech Stock Drops Following Narrow Revenue Beat

Analysts at Morgan Stanley called the Logitech's earnings beat normal Tuesday.

Shares of Logitech International S.A.  (LOGI) - Get Logitech International S.A. Report dropped Tuesday after analysts digested the company's first quarter top- and bottom-line beats. 

Analysts at Morgan Stanley maintained their equal weight rating as the company's earnings beat was more "normal" compared to blowout earnings over the previous four quarters. 

On the positive side, gaming, pointing devices and keyboard & combos segments all outperformed estimates while video collaboration and tablet revenue missed the firm's estimates. 

Citi has a buy rating on the stock, saying the results were "extremely strong" due in part to benefits from secular work from home trends continuing to act as tailwinds. 

While revenue, margins and earnings all performed ahead of expectations, the firm also took issue with the mixed results from some of the company's business segments. 

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Logitech reported first quarter earnings of $1.12 per share on revenue of $1.2 billion. Analysts were expecting the Lausanne, Switzerland company to report earnings of 91 cents per share on revenue of $1.1 billion.

"Our key categories grew high double digits. This performance demonstrates the strength of our capabilities, excellent operational execution, and ability to capitalize on long-term trends, like gaming, streaming and creating, hybrid work and video everywhere," said CEO Bracken Darrell. 

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For the year, the company confirmed outlook of flat sales growth and $800 million to $850 million in non-GAAP operating income. 

The modest revenue beat and expectations for flat year over year revenue growth weighed on the stock in trading. 

Shares of Logitech were down 10% to $108.40 on Tuesday at last check.