Logitech to Report Q3 Earnings: What's in Store for the Stock?

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]