Can Logitech (LOGI) Surprise This Earnings Season? - Analyst Blog


Shutterstock photo

Logitech International SA ( LOGI ) is set to report its fourth-quarter 2014 results on Apr 23. The company delivered a positive surprise of 128.57% in the last quarter. Let's consider some important issues that may affect the upcoming results.

Growth Factors in the Past Quarter

Logitech has been working on its core business structure, including the designing, manufacturing and distribution system to significantly improve operational efficiency. The company's cost-cutting and restructuring initiatives are also reaping expected benefits. Management implemented measures like reducing staff and revamping the product portfolio across all its businesses, among which the LifeSize business in particular is already showing a healthy improvement.

Last year, the company launched a number of innovative products including tablet covers and UE Mini Boom wireless speakers, which are a miniature version of the innovative high demand product, UE Boom. Recently, the company launched the keyboard folios for the latest Samsung Galaxy Pro Tablets.

The growing adoption of tablets and smartphones in both mature and emerging markets, are paving the way for an increased demand for Logitech's peripherals and accessories going forward.

The company is confident about its long-term growth on the back of the success of the restructuring plan initiated in Apr 2012. Since then, the company's share prices have gained more than 80% to date. The company's three-year turnaround plan was formulated to reduce costs while driving up profits and margins significantly. In March, Logitech increased its guidance for fiscal 2014 earnings and provided an encouraging outlook for fiscal 2015.

Earnings Whispers?

Our proven model does not conclusively show that Logitech is likely to beat estimates this quarter. This is because a stock needs to have both positive Earnings ESP and Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below:

Zacks ESP: Logitech has a Zacks ESP of 0.00%.

Zacks Rank: Logitech's Zacks Rank #3 (Hold) lowers the predictive power of ESP because the Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

ON Semiconductor Corp. ( ONNN ), with Earnings ESP of +6.67% and Zacks Rank #1 (Strong Buy).

Orbitz Worldwide, Inc. ( OWW ), with Earnings ESP of +100.00% and Zacks Rank #2 (Buy).

Colfax Corporation ( CFX ), with Earnings ESP of +4.65% and Zacks Rank #2.

COLFAX CORP (CFX): Free Stock Analysis Report

LOGITECH INTL (LOGI): Free Stock Analysis Report

ON SEMICON CORP (ONNN): Free Stock Analysis Report

ORBITZ WORLDWID (OWW): Free Stock Analysis Report

To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
More Headlines for: CFX , LOGI , ONNN , OWW

More from


Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by