The 10-second takeaway
For the quarter ended March 31 (Q4), Logitech International missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Logitech International reported revenue of $469.1 million. The 10 analysts polled by S&P Capital IQ looked for a top line of $488.3 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $532.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.09. The four earnings estimates compiled by S&P Capital IQ predicted -$0.03 per share. Non-GAAP EPS were -$0.09 for Q4 compared to $0.17 per share for the prior-year quarter. GAAP EPS were -$0.23 for Q4 versus $0.17 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.5%, 290 basis points worse than the prior-year quarter. Operating margin was -3.4%, 790 basis points worse than the prior-year quarter. Net margin was -7.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $413.2 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $2.04 billion. The average EPS estimate is $0.19.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 885 members out of 947 rating the stock outperform, and 62 members rating it underperform. Among 236 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 225 give Logitech International a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Logitech International is underperform, with an average price target of $6.77.
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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). 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.