What's in Store for Logitech (LOGI) This Earnings Season?

Logitech LOGI is scheduled to report second-quarter fiscal 2021 results on Oct 19.

Over the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate on three occasions and missed in the other, the average surprise being 24.1%.

In the last reported quarter, the company’s adjusted earnings climbed 64% year over year to 64 cents per share and beat the Zacks Consensus Estimate by 77.8% as well. Net sales grew 23% to $792 million and also surpassed the consensus mark of $706 million.

Logitech International S.A. Price and Consensus

Logitech International S.A. Price and Consensus

Logitech International S.A. price-consensus-chart | Logitech International S.A. Quote

For the fiscal second quarter, the Zacks Consensus Estimate for revenues is pegged at $841.1 million, suggesting a 16.9% increase from the year-ago quarter. The consensus mark for earnings is pinned at 61 cents, calling for an improvement of 22% year on year.

Let’s see how things have shaped up prior to this announcement.

Key Factors

Logitech’s fiscal second-quarter performance is likely to have benefited from growth in its Video Collaboration business, driven by the 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 shot up during the quarter to be reported owing to the growing popularity of online video games and eSports amid the pandemic-led stay-at-home environment.

However, the Mobile Speakers segment might have continued being weak in the quarter under review because of the closing of retailers worldwide due to the pandemic.

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

What Our Model Says

Our proven model does not predict an earnings beat for Infosys 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.

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

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:

Vishay Intertechnology, Inc. VSH has an Earnings ESP of +6.45% and flaunts a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corning Incorporated GLW has an Earnings ESP of +0.59% and currently sports a Zacks Rank of 1.

Alphabet GOOGL has an Earnings ESP of +10.87% and carries a Zacks Rank of 3, currently.

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

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