Logitech (LOGI) to Report Q2 Earnings: What's in Store?

Logitech International LOGI is slated to report second-quarter fiscal 2023 results on Oct 24.

The Zacks Consensus Estimate for second-quarter fiscal 2023 revenues is pegged at $1.21 billion, indicating a decrease of 7.3% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at 81 cents per share, suggesting a significant decline of 22.9% year over year.

The company’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters and missed the same on two occasions, the average surprise being 3.5%.

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-eps-surprise | Logitech International S.A. Quote

Factors to Consider

Logitech’s second-quarter results are likely to be 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 19.5% year over year to 68 million units in the third quarter of 2022.

The company witnessed a significant sales decline in several of its product offerings in the last reported quarter. In the last reported quarter, revenues from the PC Webcams, Tablet and Other Accessories, Audio & Wearables, Mobile Speakers and Other product categories plunged 46%, 16%, 40%, 22% and 67%, respectively. A strong comparison with the year-ago quarter is anticipated to have also weighed on LOGI’s sales growth.

The ongoing Russian invasion of Ukraine and industry-wide elevated component costs are anticipated to have negatively impacted the company’s sales during the to-be-reported quarter. Per Gartner, the United States and the EMEA witnessed a 17.3% and 26.4% fall in overall PC shipments, respectively, in the third quarter of 2022.

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 #5 (Strong Sell) but has an Earnings ESP of +4.94%. 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, Fortinet FTNT, Twilio TWLO and CDW Corporation CDW have the right combination of elements to post an earnings beat in their upcoming releases.

Fortinet is slated to report third-quarter 2022 results on Nov 2. The company carries a Zacks Rank #2 and has an Earnings ESP of +0.92% at present. Fortinet’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 10.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for quarterly earnings is pegged at 27 cents per share, suggesting a year-over-year improvement of 35%. FTNT’s quarterly revenues are estimated to increase 29.6% year over year to $1.12 billion.

Twilio currently carries a Zacks Rank #2 and has an Earnings ESP of +1.94%. The company is slated to report its third-quarter 2022 results on Nov 3. Twilio’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 64.1%.

The Zacks Consensus Estimate for Twilio’s third-quarter earnings stands at a loss of 39 cents per share. TWLO is estimated to report revenues of $969.2 million, which suggests growth of 30.9% from the year-ago quarter.

CDW carries a Zacks Rank #3 and has an Earnings ESP of +0.31%. The company is scheduled to report third-quarter 2022 results on Nov 2. CDW’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.8%.

The Zacks Consensus Estimate for CDW’s third-quarter earnings is pegged at $2.52 per share, indicating a year-over-year increase of 18.3%. The consensus mark for revenues stands at $6.21 billion, suggesting a year-over-year increase of 17.2%.

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