Yahoo Finance Logitech (LOGI) to Report Q4 Earnings: What's in the Offing?
Logitech International LOGI is slated to report fourth-quarter fiscal 2024 results on Apr 29.
The Zacks Consensus Estimate for fourth-quarter fiscal 2024 revenues is pegged at $951.9 million, which indicates a marginal decrease of 0.9% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at 61 cents per share, which suggests a robust increase of 22% from the year-ago quarter’s earnings of 50 cents. Earnings estimates for the fourth quarter have remained unchanged in the past 60 days.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 39.8%.
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 softened demand for personal computers (PCs), the main sales booster for its PC peripheral products. Per the latest International Data Corporation report, worldwide PC shipments improved 1.5% year over year in the first quarter of 2024. However, this growth was largely achieved due to easy year-over-year comparisons as PC shipments declined 28.7% in the year-ago quarter.
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 weak global economy amid ongoing macroeconomic and geopolitical issues enhanced global recessionary concerns, thereby prompting enterprises to postpone their large IT spending plans. 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 negatively impact 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 fourth-quarter revenues are pegged at $141.2 million and $184 million, respectively. The estimated revenue figures for Video Collaboration and Keyboards & Combos depict a year-over-year decline of 1.9% and 2%, respectively.
Additionally, the softened demand for gaming products and accessories is likely to have hurt Logitech’s Gaming category’s performance in the fourth 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 1.6% year over year to $251.8 million in the to-be-reported quarter.
Furthermore, declining consumer spending amid still-high interest rates and protracted inflationary conditions is likely to have hurt the demand for Logitech’s Headsets. Our estimate of $34.9 million for Headsets revenues implies a decline of 10.6%.
We expect revenues from the Tablet Accessories, Pointing Devices and Webcams business units to increase 3.1%, 1.4% and 0.4%, respectively, in the fourth quarter. Our fourth-quarter revenue estimates for Tablet Accessories, Pointing Devices and Webcams business units are currently pegged at $66.3 million, $158.6 million and $73.7 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 #3, 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, Advanced Micro Devices AMD, Amazon AMZN and Corning GLW have the right combination of elements to post an earnings beat in their upcoming releases.
Advanced Micro Devices carries a Zacks Rank #2 and has an Earnings ESP of +28.33%. The company is slated to report first-quarter 2024 results on Apr 30. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while matching on one occasion, with the average surprise being 3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Advanced Micro Devices’ first-quarter earnings stands at 60 cents per share, flat when compared to the year-ago quarter. It is estimated to report revenues of $5.42 billion, which suggests an increase of 1.2% from the year-ago quarter.
Amazon is slated to report first-quarter 2024 results on Apr 30. The company has a Zacks Rank #2 and an Earnings ESP of +6.19% at present. Amazon’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 51%.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 82 cents per share, which suggests an increase of 164.5% from the year-ago quarter’s earnings of 31 cents. Amazon’s quarterly revenues are estimated to improve 11.9% year over year to $142.5 billion.
Corning carries a Zacks Rank #2 and has an Earnings ESP of +0.40%. The company is scheduled to report first-quarter 2024 results on Apr 30. Its earnings surpassed the Zacks Consensus Estimate once, matched one time and missed twice in the trailing four quarters, the average surprise being 0.12%.
The Zacks Consensus Estimate for Corning’s first-quarter earnings is pegged at 36 cents per share, which indicates a year-over-year decrease of 12.2%. The consensus mark for revenues stands at $3.12 billion, which calls for a year-over-year decrease of 7.2%.
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