Logitech International (logi – Free Report) will report its third quarter 2023 results on January 23.
The Zacks Consensus estimate for third quarter fiscal 2023 revenue is pegged at $1.27 billion, representing a 22.5% decline from the same period last year. The consensus mark for non-GAAP earnings was $1.15 per share, suggesting a significant year-over-year decline of 25.8%.
The company’s earnings have beaten Zacks Consensus Estimates three times in the past four quarters and fallen below them once. The average surprise was 5.5%.
Let’s see how things are shaping up before our next announcement.
Factors to consider
Logitech’s fiscal third quarter earnings may be adversely affected by lower demand for personal computers (PCs), a key driver of PC peripheral products. According to the latest Gartner report, his worldwide PC shipments in Q4 2022 fell 28.5% year-on-year to 65.3 million units.
In 2020 and 2021, Logitech has benefited from increased demand for video collaboration, keyboard and combo, and pointing device tools, primarily due to the growing trend of working from home and learning from home. In addition, the popularity of online games and e-sports has increased amid the refraining from going out, and the demand for game products has surged. However, demand softened as economic and business activities resumed.
The company witnessed a significant drop in sales for some of its products in its last reported quarter. Last quarter, revenue from the PC webcams, tablets & other accessories, audio & wearables, keyboards & combos, and games product categories plunged 36%, 33%, 25%, 15%, and 10% respectively. .
Additionally, businesses are postponing large IT spending plans as the global economy weakens amid ongoing macroeconomic and geopolitical challenges. This may have hurt his Logitech’s overall financial performance in the third quarter.
However, lower operating expenses may partially offset the negative impact of the aforementioned factors on profitability.
what our model says
Our tried-and-true model is not a definitive predictor of LOGI’s earnings this season. A combination of positive earnings ESP and a Zacks rank of 1 (strong buy), 2 (buy), or 3 (hold) increases the likelihood of winning above earnings. However, that is not the case here.
Logitech ranks #4 in Zacks Rank (Sales) with an Earnings ESP of -4.14%. Earnings ESP filters help you find the best stocks to buy or sell before they’re reported.
Advantageous combination of stocks
According to our model, MSCI (MSCI – free report), meta platform (meta – free report) and Ram Research (LRCX – Free Reports) have the right mix of ingredients to grow your revenue in your next release.
MSCI is #2 on Zachs Rank with a revenue ESP of +0.43%. The company plans to report its fourth quarter 2022 results on January 31. That earnings topped the Zachs consensus forecast three times in his previous four quarters, but the same he missed one. The average surprise was 3.7%.you can see See the full list of today’s Zacks #1 ranked stocks here.
The Zachs consensus estimate for MSCI’s fourth-quarter earnings is $2.71 per share, representing an 8% year-over-year increase. Revenue is estimated at $565.2 million, suggesting growth of 2.8% from the same period last year.
Meta plans to report its fourth quarter 2022 results on February 1. Currently, his Zacks rank is #3 at the company with a revenue ESP of +10.48%. META’s earnings have beaten the Zacks Consensus Estimate once in the last four quarters, but underperformed it three times. The average surprise was -2.6%.
The Zacks Consensus estimate for fourth-quarter earnings is pegged at $2.12 per share, suggesting a 42.2% decline from $3.67 in the year-ago quarter. Meta’s quarterly revenue is estimated to be $31.2 billion, down 7.2% year-over-year.
Lam Research ranks #3 on Zacks Rank with a Revenue ESP of +0.42%. The company plans to report its second quarter fiscal 2023 results on January 25. The company’s earnings topped the Zachs consensus forecast three times in his four subsequent quarters, but fell short of the same value once, with an average surprise rate of 7.4%.
The Zacks consensus estimate for LRCX’s second-quarter earnings is pegged at $9.96 per share, representing a 16.8% year-over-year increase. The consensus mark for revenue is $5.1 billion, suggesting a 20.3% year-over-year increase.
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