Logitech's Q2 Outlook Scaled Back on PC Peripheral Demand Decline

Wedbush lowered projections for Logitech’s Q2 revenue to $1.27 billion, from $1.38 billion, due to supply chain issues “that likely dampened Logitech’s ability to fully meet current demand levels,” analyst Michael Pachter wrote investors Friday. Demand “likely fell off for PC peripherals after lapping heightened sales last year,” Pachter said, though he expects demand to stay elevated for video collaboration products and PC webcams in the hybrid workplace environment. The analyst also expects lower gross margin for Q2 on higher shipping costs: “Logitech likely employed air freight for much of its supply ahead of the holiday season,” he said. Logitech reports earnings Monday after market close.