Company Performance - Logitech reported quarterly earnings of $1.59 per share, exceeding the Zacks Consensus Estimate of $1.38 per share, and up from $1.53 per share a year ago, adjusted for non-recurring items [1] - The earnings surprise for this quarter was 15.22%, following a previous surprise of 9.09% when earnings were $1.20 per share against an expectation of $1.10 [2] - The company achieved revenues of $1.34 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 7.70%, compared to $1.26 billion in the same quarter last year [3] Market Outlook - Logitech shares have increased approximately 11.7% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [4] - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $1 billion, and for the current fiscal year, it is $4.66 on revenues of $4.45 billion [8] - The Computer - Peripheral Equipment industry, to which Logitech belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook for the sector [9] Earnings Estimate Revisions - The trend for earnings estimate revisions for Logitech is favorable, contributing to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [7] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Credit Facility and Financial Strategy - Logitech Europe S.A. has secured a revolving credit facility with an aggregate principal amount not to exceed $750,000,000[22] - The credit agreement includes provisions for a Swingline Loan subfacility and a Letter of Credit subfacility[22] - PNC Bank, National Association serves as the Administrative Agent for the credit agreement[21] - The agreement is dated January 27, 2025, indicating a future financial strategy[21] - The facility aims to enhance liquidity and support potential acquisitions or business expansions[22] - The credit facility is structured to include various interest rate options and compliance with financial covenants[4] - The agreement outlines mandatory and voluntary prepayment conditions to manage debt effectively[6] - The Borrower is required to maintain compliance with laws and regulations, including anti-corruption and anti-money laundering laws[31] - The credit agreement includes provisions for the adjustment of leverage ratios, ensuring financial stability[24] - The facility is part of Logitech's broader strategy to optimize capital structure and support growth initiatives[22] - The Applicable Margin is determined based on the Consolidated Net Leverage Ratio, with Level I applying for a ratio less than 1.00:1.00, resulting in a 0.000% Credit Base Rate Spread[33] - For a Consolidated Net Leverage Ratio greater than or equal to 1.00:1.00 but less than 2.00:1.00, the Applicable Margin is set at 0.000%[33] - If the ratio exceeds 3.00:1.00 but is less than 3.75:1.00, the Applicable Margin increases to 0.250%[33] - The Applicable Commitment Fee Rate is recalculated at the end of each fiscal quarter based on the Consolidated Net Leverage Ratio[34] - In case of a financial statement restatement leading to a higher Consolidated Net Leverage Ratio, the Loan Parties must pay the difference in interest and fees retroactively[35] - If only one Rating Agency provides a Debt Rating, the Applicable Margin is determined by that rating; if two agencies differ by one level, the higher level applies[36] - The Base Rate is defined as the highest of the Overnight Bank Funding Rate plus 0.5%, the Prime Rate, or Daily Simple SOFR plus 1.00%[48] - The Benchmark Replacement will be deemed the Floor if it is lower than the specified minimum rate[52] - The company must negotiate amendments if there are significant changes in the rating system of any Rating Agency[37] Revenue and Growth Projections - The company reported a significant increase in revenue, reaching $1.5 billion, representing a 20% year-over-year growth[1] - User data showed a total of 5 million active users, up from 4 million in the previous quarter, indicating a 25% increase[2] - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 15% to 18%[3] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[4] - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[5] - Market expansion efforts include entering three new countries, which are projected to add $100 million in annual revenue[6] - The company is considering strategic acquisitions to bolster its market position, with a budget of $300 million allocated for potential deals[7] - The gross margin improved to 45%, up from 42% in the previous quarter, reflecting better cost management[8] - The company plans to increase its marketing budget by 10% to support new product launches and market penetration[9] - A new partnership with a leading tech firm is expected to enhance product offerings and drive additional revenue streams[10] Financial Performance Metrics - The company reported a Consolidated Net Income for the most recent Measurement Period, excluding extraordinary gains and losses[94] - Consolidated EBITDA for the period was calculated by adding back interest expenses, taxes, and non-cash charges, reflecting operational performance[90] - Consolidated Funded Indebtedness was assessed in accordance with GAAP, indicating the total amount of debt held by the company and its subsidiaries[91] - The Consolidated Net Leverage Ratio was determined, showing the relationship between Consolidated Net Indebtedness and Consolidated EBITDA[95] Compliance and Regulatory Commitments - The company highlighted a commitment to maintaining compliance with various regulatory authorities, including the U.S. Department of Treasury and the European Union[85] - The company plans to adjust its financial strategies in response to changes in interest rates and market conditions, ensuring financial stability[102] - The management emphasized the importance of maintaining a strong liquidity position, with a focus on unrestricted cash reserves[95] Market Expansion and Strategic Initiatives - Future projections indicate a focus on operational cost savings and synergies from recent acquisitions, expected to be realized within 24 months[90] - The company is exploring new market expansion opportunities, particularly in regions with high growth potential[90] - Ongoing research and development efforts are aimed at introducing innovative products to enhance market competitiveness[90] - The company plans to expand its market presence in Asia, targeting a 25% increase in market share over the next two years[110] - A strategic acquisition was announced, expected to enhance the company's capabilities in artificial intelligence, with an estimated cost of $1.5 billion[110] - The company is implementing new strategies to improve supply chain efficiency, aiming for a 30% reduction in lead times by the end of the fiscal year[110] - The company is committed to sustainability, with plans to reduce carbon emissions by 40% by 2025[110] - The company reported a 5% increase in gross margin, attributed to cost management and pricing strategies[110] Financial Terms and Definitions - The Euro Short Term Rate (ESTR) is administered by the European Central Bank[130] - The EU Bail-In Legislation Schedule is published by the Loan Market Association[131] - The Eurocurrency Rate is determined based on the Australian Bank Bill Swap Bid Rate[134] - The Floor for interest rates is set at 0.00%[146] - Excluded Taxes include U.S. federal withholding Taxes imposed under FATCA[139] - The Expiration Date for the Revolving Credit Commitments is January 27, 2030[142] - The Facility Termination Date occurs when all Obligations have been paid in full in cash[143] - Hazardous Materials include all hazardous or toxic substances regulated under Environmental Law[156] - Hedge Liabilities encompass both Foreign Currency Hedge Liabilities and Interest Rate Hedge Liabilities[157] - Incremental Loans are specified in Section 2.11 of the agreement[158] - The term "Indebtedness" encompasses all forms of obligations, including borrowed money, notes, bonds, and other financial instruments, excluding trade payables incurred in the ordinary course of business[159] - "Indemnified Taxes" refers to taxes imposed on payments made by any Loan Party under any Loan Document, excluding Excluded Taxes[161] - "Insolvency Proceeding" includes any legal action related to bankruptcy or liquidation affecting a Person[162] - The "Interest Period" for Term SOFR Loans can be one-month or six-months, while for Term RFR Loans, it can be one-month or three-months[163] - "Interest Rate Hedge" refers to agreements aimed at minimizing the impact of increasing floating interest rates on Indebtedness[165] - "Material Adverse Change" indicates circumstances that materially affect the business or financial condition of the Loan Parties[182] - The "Measurement Period" consists of the most recently completed four fiscal quarters for which financial statements have been delivered[183] - The "Minimum Collateral Amount" for cash collateral is set at 103% of the Fronting Exposure of the Issuing Lender regarding outstanding Letters of Credit[184] - "Non-Consenting Lender" is defined as any Lender that does not approve required amendments or waivers[188] - "Notes" refer to promissory notes evidencing the Revolving Credit Loans and Swingline Loans[189] - The term "Obligation" encompasses all liabilities of Loan Parties under various Loan Documents, including direct and contingent obligations[191] - "Official Body" refers to governmental entities and regulatory bodies, including the U.S. government and international organizations like the European Central Bank[192] - "Other Connection Taxes" are taxes imposed due to a recipient's connection with a jurisdiction, excluding those arising from specific transactions[193] - "Other Taxes" include various taxes related to payments made under Loan Documents, excluding Other Connection Taxes[196] - The "Overnight Bank Funding Rate" is determined by the Federal Reserve Bank of New York and is adjusted daily based on market conditions[197] - "Parent" is defined in the introductory paragraph of the document, indicating the primary entity involved[198] - "Participant" refers to entities specified in Section 12.8(d) related to participations in financial agreements[199] - "Participant Register" is defined in Section 12.8(d), indicating a record of participants in financial transactions[200]

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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Logitech (LOGI) . This company, which is in the Zacks Computer - Peripheral Equipment industry, shows potential for another earnings beat.This maker of keyboards, webcams and other computer accessories has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boas ...

Earnings Estimates and Performance - Logitech is scheduled to report third-quarter fiscal 2025 results on Jan 28, with a Zacks Consensus Estimate for non-GAAP earnings per share of $1 35, indicating an 11 8% decline from the prior-year quarter [1] - The Zacks Consensus Estimate for Logitech's third-quarter fiscal 2025 revenues is $1 23 billion, suggesting a 1 8% decline from the year-ago quarter [2] - Logitech's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 32 5% [1] Weak Demand Environment - Logitech's fiscal third-quarter results are likely to be hurt by the slow recovery in demand for personal computers (PCs), which are the main sales booster for its PC peripheral products [3] - PC shipments grew by only 1% in 2024 compared to the previous year, according to IDC [3] - Softening IT spending due to macroeconomic uncertainties and geopolitical issues has prompted enterprises to postpone large IT spending plans, affecting Logitech's third-quarter prospects [4] Revenue Estimates by Business Unit - Video Collaboration revenues are estimated at $160 7 million, a 5 2% year-over-year decrease [5] - Keyboards & Combos revenues are estimated at $227 2 million, a 1% year-over-year decrease [5] - Tablet Accessories revenues are expected to increase 4 6% to $67 2 million [6] - Pointing Devices revenues are estimated to decrease 1 3% to $203 5 million [6] - Webcams revenues are estimated to decrease 4 3% to $82 2 million [6] - Gaming revenues are expected to decline 0 8% year-over-year to $405 6 million [7] - Headsets revenues are estimated to increase 4 8% to $43 8 million [7] Earnings Model Analysis - Logitech carries a Zacks Rank 2 but has an Earnings ESP of 0 00%, indicating that the model does not conclusively predict an earnings beat for the company this season [8] Stocks with Favorable Earnings Combination - AMETEK (AME) has an Earnings ESP of +0 54% and a Zacks Rank 2, with fourth-quarter 2024 results scheduled for Feb 4 [10] - Science Applications (SAIC) and ServiceNow (NOW) also have favorable combinations for earnings beats, with ServiceNow sporting a Zacks Rank 1 and an Earnings ESP of +1 70% [9] - PayPal has an Earnings ESP of +2 41% and a Zacks Rank 3, with fourth-quarter fiscal 2025 results scheduled for Feb 4 [11]

In its upcoming report, Logitech (LOGI) is predicted by Wall Street analysts to post quarterly earnings of $1.37 per share, reflecting a decline of 10.5% compared to the same period last year. Revenues are forecasted to be $1.24 billion, representing a year-over-year decrease of 1.2%.Over the last 30 days, there has been an upward revision of 1.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial for ...

The Zacks Computer-Peripheral Equipment industry suffers from weakening IT spending in an uncertain macroeconomic environment. Protracted inflationary conditions, still-high interest rates and geopolitical risks have induced sluggishness in IT spending, affecting the demand for computer peripherals. The industry is also showing signs of struggle as demand for remote working and online learning-related computer peripherals has declined in the post-pandemic era. Also, the PC refreshment cycle for the installe ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style S ...

Logitech International S.A. (NASDAQ: LOGI ) is a designer and manufacturer of consumer computer hardware including keyboards, mice, microphones, cameras, and other computer peripherals. The Swiss company was founded in 1981 and has around 7,300 employees with a market capitalization of around $11.4 billion. ThisEarnings analysis of individual stocks and macro analysis of broad asset class, sector and country-specific funds to discover trends using a top-down approach. For more content visit my website or fo ...

Logitech (LOGI) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often find it ha ...