Logitech sheds $2 billion in market cap as margin concerns overshadow profit beat

Logitech shares tumbled on Wednesday despite the computer peripherals maker reporting better-than-expected second-quarter profit a day earlier, as analysts pointed to profit-taking and concerns over margin pressures

The stock was down 10% at 1024 GMT, wiping about 1.5 billion Swiss francs ($1.81 billion) off the company’s roughly 14 billion-franc market value. It had gained about 12% this year before the results were announced on Tuesday.

Vontobel analyst Michael Foeth attributed the pressure on the stock to Logitech’s relatively low gross margin forecast of 41% to 42% for the December quarter, about 200 basis points below a year earlier, as well as weaker consumer demand in Europe.