Logitech International LOGI is scheduled to report third-quarter fiscal 2025 results on Jan. 28.

For the third quarter of fiscal 2025, the Zacks Consensus Estimate for Logitech’s non-GAAP earnings per share is pegged at $1.35, indicating a decline of 11.8% from the prior-year quarter’s reported figure. The estimate has been unchanged over the past 90 days.

LOGI’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 32.5%.

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for Logitech’s third-quarter fiscal 2025 revenues is pegged at $1.23 billion, suggesting a decline of approximately 1.8% from the year-ago quarter’s reported figure.

Weak Demand Environment is Likely to Hurt Logitech

Logitech’s fiscal third-quarter results are likely to be hurt by the slow recovery in demand for personal computers (PCs), the main sales booster for its PC peripheral products. Per a report by IDC, PC shipments grew by only 1% in 2024 compared to the previous year.

Logitech’s third-quarter prospects are likely to have been affected by softening IT spending. The weakening global economy amid ongoing macroeconomic uncertainties and geopolitical issues has been prompting enterprises to postpone their large IT spending plans. The delay in the product refreshment cycle among enterprises prompted by a weakening economy is likely to have hampered the third-quarter performance.

Our estimates for Logitech’s Video Collaboration and Keyboards & Combos third-quarter revenues are pegged at $160.7 million and $227.2 million, respectively. The estimated revenue figures for Video Collaboration and Keyboards & Combos suggest a year-over-year decrease of 5.2% and 1%, respectively.

We expect revenues from the Tablet Accessories business units to increase 4.6%, while revenues from Pointing Devices and Webcams to decrease 1.3% and 4.3%, respectively, in the third quarter. Our third-quarter revenue estimates for the Tablet Accessories, Pointing Devices and Webcams business units are currently pegged at $67.2 million, $203.5 million and $82.2 million, respectively.

Our estimate suggests the company’s Gaming revenues to decline 0.8% year over year to $405.6 million in the to-be-reported quarter. Our estimate of $43.8 million for Headsets revenues implies an increase of 4.8%.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for LOGI this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Though Logitech carries a Zacks Rank #2, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, AMETEK AME, Science Applications SAIC and ServiceNow NOW have the right combination of elements to post an earnings beat in their upcoming releases.

ServiceNow has an Earnings ESP of +1.70% and sports a Zacks Rank #1 at present. The company is slated to report fourth-quarter 2024 results on Jan. 29.  You can see the complete list of today’s Zacks #1 Rank stocks here.

AME has an Earnings ESP of +0.54% and a Zacks Rank #2 at present. The company is slated to report fourth-quarter 2024 results on Feb. 4.

PayPal has an Earnings ESP of +2.41% and a Zacks Rank #3 at present. The company is slated to report fourth-quarter fiscal 2025 results on Feb. 4.

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Logitech International S.A. (LOGI) : Free Stock Analysis Report

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