The Gory Details of Logitech International's Earnings Miss

Logitech International (NAS: LOGI) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Logitech International missed on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue shrank, and earnings per share shrank.

Gross margins increased, operating margins dropped, net margins contracted.

Revenue details
Logitech International reported revenue of $714.6 million. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $750.1 million. Sales were 5.2% lower than the prior-year quarter's $754.1 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.32. The four earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.32 for Q3 were 11% lower than the prior-year quarter's $0.36 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.2%, 20 basis points better than the prior-year quarter. Operating margin was 9.8%, 30 basis points worse than the prior-year quarter. Net margin was 7.7%, 90 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $564.9 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $2.40 billion. The average EPS estimate is $0.44.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 941 members out of 995 rating the stock outperform, and 55 members rating it underperform. Among 298 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 290 give Logitech International a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Logitech International is hold, with an average price target of $11.42.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Logitech International. Motley Fool newsletter services have recommended buying shares of and creating a write covered call position in Logitech International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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