Logitech (LOGI) to Report Q4 Earnings: What's in Store?
Logitech International LOGI is slated to report fourth-quarter fiscal 2022 results on May 2.
The Zacks Consensus Estimate for fourth-quarter fiscal 2022 revenues is pegged at $1.24 billion, indicating a decrease of 19.5% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at 73 cents per share, suggesting a significant decline of 49.7% year over year.
The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed once, the average surprise being 22%.
Logitech International S.A. Price and EPS Surprise
Logitech International S.A. price-eps-surprise | Logitech International S.A. Quote
Factors to Note
Logitech’s fourth-quarter results are likely to reflect negative impacts of softening demand for a personal computer (PC), which is the primary sales booster for its PC peripheral products. According to the latest Gartner report, worldwide PC shipments declined 6.8% year over year to 77.9 million units in the first quarter of 2022.
The company witnessed double sale plunges in several of its flagship offerings in the last reported quarter. The Smart Home segment witnessed a year-over-year slump of 57% while the Tablet and Other Accessories segment fell 40% year over year. A strong comparison from the year-ago quarter is anticipated to have weighed on Logitech’s sales growth.
The ongoing Russian-Ukraine conflict and industry-wide elevated component costs might have negatively impacted the company’s sales in the to-be reported quarter. In fact, the United States has already witnessed a 16% fall in overall PC shipments, per Gartner.
Logitech’s aggressive investment in retail point of sale marketing along with increased promotional spending might have weighed on its fourth-quarter profitability.
However, its traction for video collaboration, keyboards & combos and pointing devices continues to rise amid the stay-at-home scenario. This might have been driven by the growing adoption of new mobile platforms in both mature and emerging markets. Logitech’s thriving cloud-based video conferencing services continue to act as the key catalyst. The demand for gaming products has been witnessing an upsurge with the growing popularity of online video games and eSports among students and professionals working from home. These factors cumulatively might have favored the fourth-quarter top line.
What Our Model Unveils
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 currently has a Zacks Rank #4 (Sell) and 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 Favorable Combination
Per our model, ConocoPhillips COP, Sony SONY and Fortive FTV have the right combination of elements to post an earnings beat in their upcoming releases.
ConocoPhillips is slated to report first-quarter 2022 results on May 5. The company has a Zacks Rank #1 and an Earnings ESP of +6.47% at present. COP's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 12.6%. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at $3.04 per share, suggesting a whopping year-over-year surge of 340.6%. ConocoPhillips' quarterly revenues are estimated to increase 48.6% year over year to $15.69 billion.
Sony has a Zacks Rank #3 and an Earnings ESP of +12.96%. The company is scheduled to report fourth-quarter fiscal 2022 results on Apr 27. Sony's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 51.4%.
The Zacks Consensus Estimate for SONY's fourth-quarter earnings is pegged at 82 cents per share, indicating a year-over-year increase of 1.23%. The consensus mark for revenues stands at $20.82 billion, suggesting a year-over-year decline of 0.65%.
Fortive currently has a Zacks Rank #3 and an Earnings ESP of +0.30%. The company is slated to report its first-quarter 2022 results on Apr 28. Fortive's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4%.
The Zacks Consensus Estimate for Fortive's first-quarter earnings stands at 68 cents per share, suggesting a year-over-year increase of 7.9%. FTV anticipates revenues of $1.35 billion, which suggests growth of 7.1% from the year-ago quarter.
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