Logitech International S.A. (LOGI) reported fourth-quarter fiscal 2025 non-GAAP earnings of 93 cents per share, which beat the Zacks Consensus Estimate by 8.1%. However, the bottom line decreased 6% on a year-over-year basis, primarily due to higher promotional spending and increased operating expenses. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)In the fourth quarter of fiscal 2025, LOGI reported revenues of $1.01 billion, which came in line with the consensus mark. Compared wi ...

Core Insights - Logitech reported $1.01 billion in revenue for the quarter ended March 2025, reflecting a year-over-year decline of 0.1% and an EPS of $0.93 compared to $0.99 a year ago, with a surprise of -0.44% against the Zacks Consensus Estimate [1] - The company delivered an EPS surprise of +8.14%, with the consensus EPS estimate being $0.86 [1] Revenue Performance - Net Sales for Pointing Devices reached $185.86 million, exceeding the average estimate of $172.81 million, marking a year-over-year increase of +8.9% [4] - Net Sales for Keyboards & Combos were $220.63 million, slightly above the estimated $216.81 million, representing a +2% change year-over-year [4] - Net Sales for Webcams totaled $77.95 million, surpassing the average estimate of $73.14 million, with a +2.6% year-over-year change [4] - Net Sales for Headsets were $42.67 million, below the average estimate of $44.08 million, indicating a -6.1% year-over-year decline [4] - Net Sales for Video Collaboration amounted to $143.25 million, compared to the average estimate of $146.18 million, reflecting a -3.3% change year-over-year [4] - Net Sales for Gaming reached $261.81 million, falling short of the average estimate of $276.87 million, representing a -4.3% year-over-year decline [4] - Net Sales for Other products were $20.25 million, below the average estimate of $23.07 million, showing a significant -21.1% year-over-year decrease [4] - Net Sales for Tablet Accessories were $57.95 million, compared to the average estimate of $61.91 million, indicating a +3.9% year-over-year change [4] Stock Performance - Logitech shares have returned -7% over the past month, while the Zacks S&P 500 composite has changed by -0.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Industry Overview - The Zacks Computer-Peripheral Equipment industry includes companies that provide input, output, and storage devices, such as keyboards, mice, LCD panels, smart glasses, and gaming accessories [3] - The industry is characterized by intense competition, driving innovation and product relevance among participants [3] Growth Drivers - Increasing demand for professional gaming accessories, touchscreen and wireless devices, smart glasses, and RFID solutions is expected to benefit key players like Logitech, Immersion, and TransAct Technologies [1] - The shift in consumer preference from mobile gaming to professional gaming experiences, along with the rise of e-sports leagues, is a significant growth catalyst [4] - The 3D printing market is anticipated to provide long-term investment opportunities as various industries adopt 3D solutions for design and modeling [4] - Improvement in commercial PC demand, driven by the upcoming end of Windows 10 support and interest in AI-equipped PCs, is likely to enhance the industry's prospects [6] Market Challenges - The industry faces macroeconomic headwinds, including inflation and high interest rates, which are leading to sluggish IT spending and affecting demand for computer peripherals [2][7] - Increased tariffs on imports from China may raise costs for suppliers and end-users, negatively impacting market prospects [7] - Elevated operating expenses due to investments in R&D and sales capabilities may pressure profit margins in the near term [8] Performance Metrics - The Zacks Computer-Peripheral Equipment industry has underperformed the S&P 500 and the broader Zacks Computer and Technology sector, declining by 15.9% over the past year [13] - The industry is currently trading at a forward 12-month P/S ratio of 0.52X, significantly lower than the S&P 500's 4.64X and the sector's 5.34X [16] Company Highlights Immersion - Immersion is a leader in haptic technology, with its products integrated into over three billion devices globally [21][22] - The company has strong partnerships, including with Sony for the PlayStation 5, enhancing its market position [23] - The Zacks Consensus Estimate for fiscal 2025 earnings has been revised upward to $1.81 per share [24] Logitech - Logitech is a global leader in PC peripherals, experiencing a recovery with four consecutive quarters of year-over-year sales growth [28] - The company benefits from increasing hybrid work trends and partnerships with cloud providers like Zoom and Microsoft [29] - The Zacks Consensus Estimate for fiscal 2025 earnings has been revised upward to $4.77 per share [30] TransAct Technologies - TransAct focuses on transaction-based printers and is benefiting from the demand amid digital transformation [33][34] - The Zacks Consensus Estimate for fiscal 2025 projects a loss of 26 cents per share, wider than previous estimates [35]