Earnings Beat: Logitech International S.A. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

A week ago, Logitech International S.A. (VTX:LOGN) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of US$1.1b, some 5.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.92, 30% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Logitech International

Taking into account the latest results, Logitech International's 15 analysts currently expect revenues in 2025 to be US$4.43b, approximately in line with the last 12 months. Statutory earnings per share are expected to descend 17% to US$3.74 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.38b and earnings per share (EPS) of US$3.59 in 2025. So the consensus seems to have become somewhat more optimistic on Logitech International's earnings potential following these results.

The consensus price target was unchanged at CHF83.09, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Logitech International analyst has a price target of CHF104 per share, while the most pessimistic values it at CHF59.58. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Logitech International shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Logitech International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.4% growth on an annualised basis. This is compared to a historical growth rate of 7.2% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Logitech International is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Logitech International's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Logitech International's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Logitech International going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Logitech International's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com