Logitech Earnings: Here’s Why Shares are Down Now

Logitech International SA (NASDAQ:LOGI) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5.64%.

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Logitech International SA Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.23 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Decreased 11.84% to $469 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Logitech International SA reported adjusted EPS loss of $0.23 per share. By that measure, the company missed the mean analyst estimate of $-0.05. It beat the average revenue estimate of $466.5 million.

Quoting Management: “Regionally, with the exception of EMEA, our retail business has begun to stabilize,” said Bracken P. Darrell, Logitech president and chief executive officer. “In Europe, the combination of the difficult macro-economic environment and the very slow PC market stalled our business in Q4. For the rest of our retail business (Americas and Asia), sales of our mice and keyboards grew 6 percent, much better than the market for PCs, which was down globally nearly 14 percent year over year. I was also pleased with the strong momentum of our tablets accessories during the fourth quarter. We recently launched a version of our best-selling Ultrathin Keyboard Cover for the iPad mini as well as a range of new tablet folios.”

Key Stats (on next page)…

Revenue decreased 23.68% from $614.5 million in the previous quarter. EPS increased to $-0.23 in the quarter versus EPS of $-1.24 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.01 to a loss $0.12. For the current year, the average estimate has moved down from a profit of $0.44 to a loss of $1.26 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)