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What's in the Offing for Logitech (LOGI) in Q3 Earnings?

Logitech International LOGI is slated to report third-quarter fiscal 2023 results on Jan 23.

The Zacks Consensus Estimate for third-quarter fiscal 2023 revenues is pegged at $1.27 billion, indicating a decrease of 22.5% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at $1.15 per share, suggesting a significant decline of 25.8% year over year.

The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed the same on one occasion, the average surprise being 5.5%.

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 and EPS Surprise
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 declining demand for personal computers (PCs), the main sales booster for its PC peripheral products. Per the latest Gartner report, worldwide PC shipments declined 28.5% year over year to 65.3 million units in the fourth quarter of 2022.

In 2020 and 2021, Logitech benefited from the elevated demand for its video collaboration, keyboards & combos and pointing device tools, mainly driven by the heightening of work-from-home and learn-from-home trends. Additionally, the demand for gaming products shot up due to the growing popularity of online video games and eSports amid the stay-at-home scenario. However, the demand softened due to the reopening of economic and business activities.

The company witnessed a significant sales decline in several of its product offerings in the last reported quarter. In the previous quarter, revenues from the PC Webcams, Tablet and Other Accessories, Audio & Wearables, Keyboards & Combos and Gaming product categories plunged 36%, 33%, 25%, 15% and 10%, respectively.

Additionally, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. This may have hurt Logitech’s overall financial performance in the fiscal third quarter.

However, reduced operating expenses are 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.

Logitech carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -4.14%. 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, MSCI MSCI, Meta Platforms META and Lam Research LRCX have the right combination of elements to post an earnings beat in their upcoming releases.

MSCI carries a Zacks Rank #2 and has an Earnings ESP of +0.43%. The company is scheduled to report fourth-quarter 2022 results on Jan 31. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same once, the average surprise being 3.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MSCI’s fourth-quarter earnings stands at $2.71 per share, implying a year-over-year increase of 8%. It is estimated to report revenues of $565.2 million, which suggests growth of 2.8% from the year-ago quarter.

Meta is slated to report fourth-quarter 2022 results on Feb 1. The company has a Zacks Rank #3 and an Earnings ESP of +10.48% at present. META’s earnings beat the Zacks Consensus Estimate once in the trailing four quarters while missing the same on three occasions, the average surprise being a negative 2.6%.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.12 per share, suggesting a decline of 42.2% from the year-ago quarter’s earnings of $3.67. Meta’s quarterly revenues are estimated to decline 7.2% year over year to $31.2 billion.

Lam Research carries a Zacks Rank #3 and has an Earnings ESP of +0.42%. The company is slated to report second-quarter fiscal 2023 results on Jan 25. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 7.4%.

The Zacks Consensus Estimate for LRCX’s fiscal second-quarter earnings is pegged at $9.96 per share, indicating a year-over-year increase of 16.8%. The consensus mark for revenues stands at $5.1 billion, suggesting a year-over-year increase of 20.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Logitech International S.A. (LOGI) : Free Stock Analysis Report

Lam Research Corporation (LRCX) : Free Stock Analysis Report

MSCI Inc (MSCI) : Free Stock Analysis Report

Meta Platforms, Inc. (META) : Free Stock Analysis Report

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