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Logitech (LOGI) to Report Q1 Earnings: What's in Store?
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Logitech International (LOGI - Free Report) is slated to report first-quarter fiscal 2024 results on Jul 24.
The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $905.2 million, indicating a decrease of 22% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at 47 cents per share, suggesting a significant decline of 36.5% year over year. Earnings estimate for the first quarter has been revised a penny northward in the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters and missed the same on two occasions, the average surprise being 2.8%.
Let’s see how things have shaped up before the upcoming announcement.
Logitech International S.A. Price and EPS Surprise
Logitech’s fiscal fourth-quarter earnings are likely to have been negatively impacted by the weakened demand for personal computers (PCs), the main sales booster for its PC peripheral products. Per the latest Gartner report, worldwide PC shipments declined 16.6% year over year to 59.7 million units in the second quarter of 2023.
In 2020 and 2021, Logitech benefited from the elevated demand for its Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device tools, mainly driven by the heightening of work-from-home and learn-from-home trends.
However, the weakening global economy amid ongoing macroeconomic and geopolitical issues enhanced global recessionary concerns, thereby prompting enterprises to postpone their large IT spending plan. Furthermore, continued industry layoffs on growing recessionary concerns are hampering the demand for PC peripheral products by organizations.
Additionally, a lack of the need for product refreshes is expected to have negatively impacted the demand for Logitech’s products in the to-be-reported quarter. The majority of the global working population refreshed PC and related peripheral products about just 2 years ago in the wake of the pandemic-led work-from-home trend.
Our estimates for Logitech’s Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device first-quarter revenues are pegged at $186.5 million, $40.4 million, $168.9 million and $140.5 million, respectively. The estimated revenue figures for Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device depict a year-over-year decline of 24.2%, 31.9%, 25.8% and 23.3%, respectively.
Additionally, the softened demand for gaming products and accessories is likely to have hurt Logitech’s Gaming category’s performance in the first quarter. The demand for gaming products shot up due to the growing popularity of online video games and eSports amid the stay-at-home scenario during the pandemic. However, the demand softened due to the reopening of economic and business activities. Our estimate suggests the company’s Gaming revenues to decline 16.7% year over year to $235.7 million in the to-be-reported quarter.
Furthermore, declining consumer spending amid high inflation and interest rates is likely to have hurt the demand for Logitech’s Mobile Speakers, Tablet & Other Accessories and Audio & Wearables products. Our estimate of $14.9 million for Mobile Speakers revenues implies a decline of 33.2%, while sales of Tablet & Other Accessories are anticipated to fall 7.1% to $61.9 million. Our estimate for Audio & Wearables stands at $51.4 million, suggesting a decline of 25.9% from the year-ago quarter.
However, the company’s cost-saving initiative, which includes headcount reduction, is likely to have partially offset the negative impacts of the aforementioned factors on 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.
Though Logitech has an Earnings ESP of +0.86%, it carries a Zacks Rank #4 (Sell). 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, Apple (AAPL - Free Report) , Block (SQ - Free Report) and Alibaba (BABA - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +10.19%. The company is scheduled to report third-quarter fiscal 2023 results on Aug 3. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, with the average surprise being 2.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.20 per share, flat with the year-ago quarter. It is estimated to report revenues of $81.21 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Block is slated to report second-quarter 2023 results on Aug 3. The company has a Zacks Rank #3 and an Earnings ESP of +12.99% at present. Block’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on one occasion and matching it once, the average surprise being 22.6%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 35 cents per share, suggesting a whopping increase of 94.4% from the year-ago quarter’s earnings of 18 cents. Block’s quarterly revenues are estimated to increase 15.4% year over year to $5.08 billion.
Alibaba carries a Zacks Rank #3 and has an Earnings ESP of +6.19%. The company is anticipated to report first-quarter fiscal 2024 results on Aug 3. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for BABA’s first-quarter earnings is pegged at $1.90 per share, indicating a year-over-year increase of 8.6%. The consensus mark for revenues stands at $31.21 billion, suggesting a year-over-year rise of 1.7%.
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Logitech (LOGI) to Report Q1 Earnings: What's in Store?
Logitech International (LOGI - Free Report) is slated to report first-quarter fiscal 2024 results on Jul 24.
The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $905.2 million, indicating a decrease of 22% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at 47 cents per share, suggesting a significant decline of 36.5% year over year. Earnings estimate for the first quarter has been revised a penny northward in the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters and missed the same on two occasions, the average surprise being 2.8%.
Let’s see how things have shaped up before the upcoming announcement.
Logitech International S.A. Price and EPS Surprise
Logitech International S.A. price-eps-surprise | Logitech International S.A. Quote
Factors to Consider
Logitech’s fiscal fourth-quarter earnings are likely to have been negatively impacted by the weakened demand for personal computers (PCs), the main sales booster for its PC peripheral products. Per the latest Gartner report, worldwide PC shipments declined 16.6% year over year to 59.7 million units in the second quarter of 2023.
In 2020 and 2021, Logitech benefited from the elevated demand for its Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device tools, mainly driven by the heightening of work-from-home and learn-from-home trends.
However, the weakening global economy amid ongoing macroeconomic and geopolitical issues enhanced global recessionary concerns, thereby prompting enterprises to postpone their large IT spending plan. Furthermore, continued industry layoffs on growing recessionary concerns are hampering the demand for PC peripheral products by organizations.
Additionally, a lack of the need for product refreshes is expected to have negatively impacted the demand for Logitech’s products in the to-be-reported quarter. The majority of the global working population refreshed PC and related peripheral products about just 2 years ago in the wake of the pandemic-led work-from-home trend.
Our estimates for Logitech’s Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device first-quarter revenues are pegged at $186.5 million, $40.4 million, $168.9 million and $140.5 million, respectively. The estimated revenue figures for Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device depict a year-over-year decline of 24.2%, 31.9%, 25.8% and 23.3%, respectively.
Additionally, the softened demand for gaming products and accessories is likely to have hurt Logitech’s Gaming category’s performance in the first quarter. The demand for gaming products shot up due to the growing popularity of online video games and eSports amid the stay-at-home scenario during the pandemic. However, the demand softened due to the reopening of economic and business activities. Our estimate suggests the company’s Gaming revenues to decline 16.7% year over year to $235.7 million in the to-be-reported quarter.
Furthermore, declining consumer spending amid high inflation and interest rates is likely to have hurt the demand for Logitech’s Mobile Speakers, Tablet & Other Accessories and Audio & Wearables products. Our estimate of $14.9 million for Mobile Speakers revenues implies a decline of 33.2%, while sales of Tablet & Other Accessories are anticipated to fall 7.1% to $61.9 million. Our estimate for Audio & Wearables stands at $51.4 million, suggesting a decline of 25.9% from the year-ago quarter.
However, the company’s cost-saving initiative, which includes headcount reduction, is likely to have partially offset the negative impacts of the aforementioned factors on 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.
Though Logitech has an Earnings ESP of +0.86%, it carries a Zacks Rank #4 (Sell). 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, Apple (AAPL - Free Report) , Block (SQ - Free Report) and Alibaba (BABA - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +10.19%. The company is scheduled to report third-quarter fiscal 2023 results on Aug 3. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, with the average surprise being 2.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.20 per share, flat with the year-ago quarter. It is estimated to report revenues of $81.21 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Block is slated to report second-quarter 2023 results on Aug 3. The company has a Zacks Rank #3 and an Earnings ESP of +12.99% at present. Block’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on one occasion and matching it once, the average surprise being 22.6%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 35 cents per share, suggesting a whopping increase of 94.4% from the year-ago quarter’s earnings of 18 cents. Block’s quarterly revenues are estimated to increase 15.4% year over year to $5.08 billion.
Alibaba carries a Zacks Rank #3 and has an Earnings ESP of +6.19%. The company is anticipated to report first-quarter fiscal 2024 results on Aug 3. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for BABA’s first-quarter earnings is pegged at $1.90 per share, indicating a year-over-year increase of 8.6%. The consensus mark for revenues stands at $31.21 billion, suggesting a year-over-year rise of 1.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.