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What's in the Offing for Logitech (LOGI) This Earnings Season?

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Logitech International (LOGI - Free Report) is slated to report first-quarter fiscal 2023 results on Jul 25.

The Zacks Consensus Estimate for first-quarter fiscal 2023 revenues is pegged at $1.18 billion, indicating a decrease of 10.1% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at 82 cents per share, suggesting a significant decline of 32.8% year over year.

The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed the same once, the average surprise being 12%.

Let’s see how things have shaped up before the upcoming announcement.

Factors to Note Ahead of Q1 Results

Logitech’s first-quarter results are likely to be negatively impacted by the declining demand for personal computers (PCs), the main sales booster for its PC peripheral products. Per the latest Gartner report, worldwide PC shipments declined 12.6% year over year to 72 million units in the second quarter of 2022.

The company witnessed a significant sales decline in several of its product offerings in the last reported quarter. In the last reported quarter, revenues from the Video Collaboration, PC Webcams, Tablet and Other Accessories, Audio & Wearables, Mobile Speakers and Smart Home product categories plunged 37%, 42%, 43%, 37%, 16% and 75%, respectively. A strong comparison with the year-ago quarter is anticipated to have also weighed on LOGI’s sales growth.

The ongoing Russian invasion of Ukraine and industry-wide elevated component costs are anticipated to have negatively impacted the company’s sales during the to-be-reported quarter. Per Gartner, the U.S. and the EMEA regions have already witnessed a 17.5% and 18% fall in overall PC shipments, respectively.

Furthermore, Logitech’s aggressive investment in retail point of sale marketing, along with increased promotional spending, might have weighed on its first-quarter profitability.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for LOGI this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Logitech carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Valero Energy (VLO - Free Report) , PBF Energy (PBF - Free Report) and Apple (AAPL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.

Valero sports a Zacks Rank #1 and has an Earnings ESP of +10.22%. The company is scheduled to report second-quarter 2022 results on Jul 28. Valero’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 84.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for VLO’s second-quarter earnings is pegged at $8.78 per share, indicating a sharp improvement from the year-ago quarter’s earnings of 48 cents per share. The consensus mark for revenues stands at $39.7 billion, suggesting a year-over-year increase of 42.9%.

PBF Energy currently sports a Zacks Rank #1 and has an Earnings ESP of +20.67%. The company is slated to report its second-quarter 2022 results on Jul 28. PBF Energy’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 61.5%.

The Zacks Consensus Estimate for PBF Energy’s second-quarter earnings stands at $6.57 per share, implying a strong improvement from the year-ago quarter’s loss of $1.26. PBF is estimated to report revenues of $9.8 billion, which suggests growth of 42.3% from the year-ago quarter.

Apple is slated to report third-quarter fiscal 2022 results on Jul 28. The company carries a Zacks Rank #3 and has an Earnings ESP of +0.88% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 11.9%.

The Zacks Consensus Estimate for quarterly earnings is pegged at $1.13 per share, suggesting a year-over-year decline of 13.1%. AAPL’s quarterly revenues are estimated to increase 0.5% year over year to $81.9 billion.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.