Logitech International S.A. Just Recorded A 18% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Logitech International S.A. (VTX:LOGN) had a good week, as its shares rose 3.3% to close at CHF74.58 following the release of its full-year results. Revenues were US$4.3b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$3.87 were also better than expected, beating analyst predictions by 18%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Logitech International

Following last week's earnings report, Logitech International's 14 analysts are forecasting 2025 revenues to be US$4.37b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 9.0% to US$3.62 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$4.37b and earnings per share (EPS) of US$3.37 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at CHF75.61, 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. There are some variant perceptions on Logitech International, with the most bullish analyst valuing it at CHF97.31 and the most bearish at CHF59.58 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Logitech International's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2025 being well below the historical 9.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Logitech International.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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 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 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.