Logitech International S.A. Just Beat EPS By 47%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Logitech International S.A. (VTX:LOGN) released its third-quarter result to the market. The early response was not positive, with shares down 9.0% to CHF74.28 in the past week. It looks like a credible result overall - although revenues of US$1.3b were what the analysts expected, Logitech International surprised by delivering a (statutory) profit of US$1.55 per share, an impressive 47% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Logitech International

Taking into account the latest results, the current consensus from Logitech International's 15 analysts is for revenues of US$4.38b in 2025. This would reflect a satisfactory 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 8.2% to US$3.39. In the lead-up to this report, the analysts had been modelling revenues of US$4.43b and earnings per share (EPS) of US$3.29 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 CHF70.80, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Logitech International, with the most bullish analyst valuing it at CHF89.19 and the most bearish at CHF52.59 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Logitech International's revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% 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 most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Logitech International following these results. 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. The consensus price target held steady at CHF70.80, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Logitech International. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Logitech International analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.