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

The quarterly results for Logitech International S.A. (VTX:LOGN) were released last week, making it a good time to revisit its performance. Revenues were US$1.1b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.98, an impressive 24% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Logitech International after the latest results.

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Taking into account the latest results, the consensus forecast from Logitech International's 14 analysts is for revenues of US$4.75b in 2026. This reflects a credible 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 4.9% to US$4.10 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.67b and earnings per share (EPS) of US$3.68 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the substantial gain in earnings per share expectations following these results.

View our latest analysis for Logitech International

There's been no major changes to the consensus price target of CHF82.42, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Logitech International analyst has a price target of CHF104 per share, while the most pessimistic values it at CHF61.16. 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. For example, we noticed that Logitech International's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.0% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 1.1% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.4% annually for the foreseeable future. Although Logitech International's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CHF82.42, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Logitech International analysts - going out to 2028, and you can see them free on our platform here.

We also provide an overview of the Logitech International Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.