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Logitech (LOGI) to Report Q3 Earnings: What's in Store?

Zacks Equity Research
·3 min read

Logitech LOGI is scheduled to report third-quarter fiscal 2021 results on Jan 18.

Over the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate on all occasions, the average surprise being 74.9%.

In the last reported quarter, the company’s adjusted earnings soared 274% year over year to $1.87 per share and beat the Zacks Consensus Estimate by a whopping 201.6% as well. Net sales surged 75% to $1.26 billion and also surpassed the consensus mark of $841.1 million.

For the fiscal third quarter, the Zacks Consensus Estimate for revenues is pegged at $1.23 billion, suggesting a 35.9% jump from the year-ago quarter. The consensus mark for earnings is pinned at $1.08, calling for an improvement of 28.6% year on year.

Let’s see how things have shaped up prior to this announcement.

Key Factors

Logitech’s fiscal third-quarter performance is likely to have benefited from growth in its Video Collaboration business, driven by the spike in work-from-home and learn-from-home trends. Also, the PC peripheral market is witnessing strong traction, which bodes well for the company.

Logitech International S.A. Price and Consensus

Logitech International S.A. Price and Consensus
Logitech International S.A. Price and Consensus

Logitech International S.A. price-consensus-chart | Logitech International S.A. Quote

Additionally, demand for its gaming products is likely to have shot up during the quarter to be reported owing to the rising popularity of online video games and eSports amid the pandemic-led stay-at-home environment.

However, the Mobile Speakers segment might have continued being weak in the quarter under review because of the closing of retailers worldwide due to the pandemic.

What Our Model Says

Our proven model does not predict an earnings beat for Logitech this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Logitech currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:

Apple Inc. AAPL has an Earnings ESP of +10.58% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Avnet, Inc. AVT has an Earnings ESP of +2.63% and carries a Zacks Rank #2, at present.

Maxim Integrated Products, Inc. MXIM has an Earnings ESP of +1.83% and holds a Zacks Rank of 2 currently.

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Avnet, Inc. (AVT) : Free Stock Analysis Report
 
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