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

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·4-min read
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Logitech International LOGI is scheduled to report third-quarter fiscal 2022 results on Jan 24.

The Zacks Consensus Estimate for third-quarter fiscal 2022 revenues is pegged at $1.51 billion, indicating a year-over-year decline of 9.5%. The consensus mark for non-GAAP earnings stands at $1.32 per share, suggesting a significant decline of 46.1% year over year.

The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 49.1%.

Let’s see how things have shaped up prior to this 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 Likely to Impact Q3 Results

Logitech’s third-quarter results are likely to have been negatively impacted by the softening demand for a personal computer (PC), which is the main sales booster for its PC peripheral products. According to the latest Gartner report, worldwide PC shipments declined 5% year over year to 88.4 million units in the fourth quarter of 2021.

A strong comparison from the year-ago quarter is anticipated to have also weighed on sales growth. PC and PC peripheral makers have been witnessing a drastic surge in demand for their products as pandemic-led stay-at-home and social distancing measures adopted by governments worldwide compelled people to make arrangements for work-from-home or online learning.

However, it seems that demand for PCs and PC peripherals is weakening as the majority of the working and student population have already arranged their in-house set-up. Additionally, the ongoing industry-wide supply-chain constraint is also likely to have negatively impacted Logitech’s sales during the third quarter.

Furthermore, LOGI’s aggressive investment in retail point of sale marketing along with increased promotional spending and industry-wide elevated component costs might have weighed on its third-quarter profitability.

What Our Model Unveils

Our proven model does not conclusively predict an earnings beat for Logitech this time. 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 Zacks Rank #3 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 the Favorable Combination

Per our model, Apple AAPL, Advanced Micro Devices AMD and Alphabet GOOGL have the right combination of elements to post an earnings beat in their upcoming releases.

Apple is slated to report first-quarter fiscal 2022 results on Jan 27. The company carries a Zacks Rank #2 and has an Earnings ESP of +2.89% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 22.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Apple’s quarterly earnings is pegged at $1.89 per share, suggesting a year-over-year improvement of 12.5%. AAPL’s quarterly revenues are estimated to increase 6.1% year over year to $118.1 billion.

Advanced Micro Devices carries a Zacks Rank #2 and has an Earnings ESP of +3.77%. The company is scheduled to report fourth-quarter 2021 results on Feb 1. Advanced Micro Devices’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14%.

The Zacks Consensus Estimate for AMD’s fourth-quarter earnings is pegged at 75 cents per share, indicating year-over-year growth of 44.2%. The consensus mark for revenues stands at $4.52 billion, suggesting a year-over-year increase of 39.4%.

Alphabet currently carries a Zacks Rank #2 and has an Earnings ESP of +10.08%. The company is slated to report its fourth-quarter 2021 results on Feb 1. Alphabet’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 4.6%.

The Zacks Consensus Estimate for Alphabet’s fourth-quarter earnings stands at $26.85 per share, implying a year-over-year increase of 20.4%. GOOGL is estimated to report revenues of $59.3 billion, which suggests growth of 27.7% from the year-ago quarter.

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


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Apple Inc. (AAPL) : Free Stock Analysis Report

Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report

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

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

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