Logitech International SA (LOGI) shares tumbled 5.39% in after-hours trading on Wednesday, as a confluence of supply chain concerns and tempered forward guidance rattled investor confidence.
The decline was triggered by news that a key semiconductor component supplier experienced a serious incident at a manufacturing facility, forcing a temporary closure. The disruption is expected to impact Logitech's gaming and personal workspace products, with tight semiconductor supply making it difficult to source alternative components. This is likely to erode near-term market share, according to market observers.
Further weighing on the stock, multiple Wall Street analysts lowered their price targets. Berenberg cut its target to $141 from $148, JPMorgan to $120 from $123, and Wedbush to $130 from $135, though all maintained positive ratings. Adding to the pressure, Logitech's fiscal Q2 revenue guidance of $1.19 billion to $1.22 billion fell short of the $1.23 billion consensus estimate, overshadowing a strong fiscal Q1 report where adjusted EPS of $1.85 beat estimates by over 50%.
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