Logitech International SA
) 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
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
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
and Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below:
Logitech has a Zacks ESP of 0.00%.
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.
), with Earnings ESP of +6.67% and Zacks Rank #1 (Strong
Orbitz Worldwide, Inc.
), with Earnings ESP of +100.00% and Zacks Rank #2 (Buy).
), with Earnings ESP of +4.65% and Zacks Rank #2.
COLFAX CORP (CFX): Free Stock Analysis Report
LOGITECH INTL (LOGI): Free Stock Analysis
ON SEMICON CORP (ONNN): Free Stock Analysis
ORBITZ WORLDWID (OWW): Free Stock Analysis
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