We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for third-quarter fiscal 2024 revenues is pegged at $1.23 billion, indicating a decrease of 3.2% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at $1.12 per share, suggesting a decline of 1.8% year over year. Earnings estimates for the third quarter have remained unchanged in the past 60 days.
The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed on one occasion, the average surprise being 30.4%.
Let’s see how things have shaped up before the upcoming announcement.
Logitech International S.A. Price and EPS Surprise
Logitech’s fiscal third-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 International Data Corporation report, worldwide PC shipments declined 2.7% year over year to 67.1 million units in the third 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 due to 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 PCs and related peripheral products about two years ago in the wake of the pandemic-led work-from-home trend.
Our estimates for Logitech’s Video Collaboration and Keyboards & Combos third-quarter revenues are pegged at $171.2 million and $213.4 million, respectively. The estimated revenue figures for Video Collaboration and Keyboards & Combos depict a year-over-year decline of 1.6% and 3%, respectively.
Additionally, the softened demand for gaming products and accessories is likely to have hurt Logitech’s Gaming category’s performance in the third 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 will decline 13.5% year over year to $356.6 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 Headsets. Our estimate of $46.6 million for Headsets revenues implies a decline of 0.9%.
However, we expect revenues from the Tablet & Other Accessories, Pointing Devices and Webcams business units to increase 7.9%, 3.8% and 1.7%, respectively, in the third quarter. Our third-quarter revenue estimates for Tablet & Other Accessories, Pointing Devices and Webcams business units are currently pegged at $70.3 million, $206.6 million and $94.6 million, respectively.
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 carries a Zacks Rank #2, it 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, Amazon.com (AMZN - Free Report) , Apple (AAPL - Free Report) and Meta Platforms (META - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Amazon carries a Zacks Rank #2 and has an Earnings ESP of +10.48%. The company is expected to report fourth-quarter 2023 results on Feb 1. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 54.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Amazon’s fourth-quarter earnings stands at 79 cents per share, indicating a year-over-year improvement of 276.2%. It is estimated to report revenues of $166.12 billion, which suggests an increase of approximately 11.3% from the year-ago quarter.
Apple is slated to report first-quarter fiscal 2024 results on Feb 1. The company has a Zacks Rank #2 and an Earnings ESP of +3.65% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 3.5%.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.08 per share, suggesting an increase of 10.6% from the year-ago quarter’s earnings of $1.88. Apple’s quarterly revenues are estimated to improve marginally to $117.5 billion from $117.2 billion in the year-ago quarter.
Meta carries a Zacks Rank #2 and has an Earnings ESP of +1.46%. The company is scheduled to report fourth-quarter 2023 results on Feb 1. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.5%.
The Zacks Consensus Estimate for Meta’s fourth-quarter earnings is pegged at $4.80 per share, indicating a year-over-year increase of 60%. The consensus mark for revenues stands at $38.78 billion, calling for a year-over-year increase of 20.6%.
Image: Bigstock
Logitech (LOGI) to Report Q3 Earnings: What's in Store?
Logitech International (LOGI - Free Report) is slated to report third-quarter fiscal 2024 results on Jan 22.
The Zacks Consensus Estimate for third-quarter fiscal 2024 revenues is pegged at $1.23 billion, indicating a decrease of 3.2% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at $1.12 per share, suggesting a decline of 1.8% year over year. Earnings estimates for the third quarter have remained unchanged in the past 60 days.
The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed on one occasion, the average surprise being 30.4%.
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 third-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 International Data Corporation report, worldwide PC shipments declined 2.7% year over year to 67.1 million units in the third 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 due to 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 PCs and related peripheral products about two years ago in the wake of the pandemic-led work-from-home trend.
Our estimates for Logitech’s Video Collaboration and Keyboards & Combos third-quarter revenues are pegged at $171.2 million and $213.4 million, respectively. The estimated revenue figures for Video Collaboration and Keyboards & Combos depict a year-over-year decline of 1.6% and 3%, respectively.
Additionally, the softened demand for gaming products and accessories is likely to have hurt Logitech’s Gaming category’s performance in the third 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 will decline 13.5% year over year to $356.6 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 Headsets. Our estimate of $46.6 million for Headsets revenues implies a decline of 0.9%.
However, we expect revenues from the Tablet & Other Accessories, Pointing Devices and Webcams business units to increase 7.9%, 3.8% and 1.7%, respectively, in the third quarter. Our third-quarter revenue estimates for Tablet & Other Accessories, Pointing Devices and Webcams business units are currently pegged at $70.3 million, $206.6 million and $94.6 million, respectively.
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 carries a Zacks Rank #2, it 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, Amazon.com (AMZN - Free Report) , Apple (AAPL - Free Report) and Meta Platforms (META - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Amazon carries a Zacks Rank #2 and has an Earnings ESP of +10.48%. The company is expected to report fourth-quarter 2023 results on Feb 1. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 54.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Amazon’s fourth-quarter earnings stands at 79 cents per share, indicating a year-over-year improvement of 276.2%. It is estimated to report revenues of $166.12 billion, which suggests an increase of approximately 11.3% from the year-ago quarter.
Apple is slated to report first-quarter fiscal 2024 results on Feb 1. The company has a Zacks Rank #2 and an Earnings ESP of +3.65% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 3.5%.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.08 per share, suggesting an increase of 10.6% from the year-ago quarter’s earnings of $1.88. Apple’s quarterly revenues are estimated to improve marginally to $117.5 billion from $117.2 billion in the year-ago quarter.
Meta carries a Zacks Rank #2 and has an Earnings ESP of +1.46%. The company is scheduled to report fourth-quarter 2023 results on Feb 1. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.5%.
The Zacks Consensus Estimate for Meta’s fourth-quarter earnings is pegged at $4.80 per share, indicating a year-over-year increase of 60%. The consensus mark for revenues stands at $38.78 billion, calling for a year-over-year increase of 20.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.