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Logitech (LOGI) to Report Q1 Earnings: What's in Store?

Logitech LOGI is scheduled to report first-quarter fiscal 2021 results on Jul 20.

Over the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate on three occasions and missed in the remaining one, the average surprise being 6.69%.

In the last reported quarter, the company’s adjusted earnings of 42 cents per share beat the Zacks Consensus Estimate by 16.7%. Net sales of $709 million surpassed the consensus mark of $661 million.

For the fiscal first quarter, the Zacks Consensus Estimate for revenues is pegged at $706.14 million, suggesting a 9.61% increase from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at 34 cents, calling for a decline of 12.82% year on year.

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

Key Factors

Logitech’s fiscal first-quarter performance is likely to have benefited from growth in its Video Collaboration business, driven by rising work-from-home and learn-from-home trends. Also, the PC peripheral market is witnessing strong traction, which bodes well for the company.

Additionally, demand for its gaming products is likely to have increased during the quarter to be reported owing to the growing popularity of online video games and eSports amid the coronavirus-led stay-at-home environment.

However, the Mobile Speakers segment is expected to have continued to be weak in the quarter to be reported because of the closing of retailers worldwide due to the pandemic.

Also, the first two quarters of the fiscal year typically generates the lowest cash flow as Logitech builds inventory for the holiday season.

Moreover, margins are expected to have been affected due to the replenishment of the company’s distribution center stock.

What Our Model Says

Our proven model does not predict an earnings beat for Logitech this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Logitech currently has a Zacks Rank of 3 and an Earnings ESP of 0.00%.

Stocks to Consider

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results:

Fastenal Company FAST has an Earnings ESP of +1.62% and a Zacks Rank of 1, presently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Domino's Pizza, Inc. DPZ has an Earnings ESP of +14.33% and a Zacks Rank of 2, at present.

Abbott Laboratories ABT has an Earnings ESP of +12.8% and a Zacks Rank of 3, currently.

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