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Logitech International Goes Negative

By Seth Jayson – Updated Apr 10, 2017 at 2:50PM

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Just the facts, Fool.

Logitech International (Nasdaq: LOGI) reported earnings on Jan. 24. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.

Margins shrank across the board.

Revenue details
Logitech International booked revenue of $614.5 million. The 10 analysts polled by S&P Capital IQ predicted sales of $683.0 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $714.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.10. The three earnings estimates compiled by S&P Capital IQ forecast $0.34 per share. GAAP EPS were -$1.24 for Q3 versus $0.32 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 34.2%, 200 basis points worse than the prior-year quarter. Operating margin was 5.0%, 480 basis points worse than the prior-year quarter. Net margin was -31.7%, 3,940 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $524.0 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $2.23 billion. The average EPS estimate is $0.67.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 904 members out of 964 rating the stock outperform, and 60 members rating it underperform. Among 265 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 251 give Logitech International a green thumbs-up, and 14 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 $8.63.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Logitech International SA (USA). The Motley Fool owns shares of Logitech International SA (USA). 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.

Stocks Mentioned

Logitech International Stock Quote
Logitech International
$59.57 (-0.68%) $0.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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