Logitech Seen Posting 'Decent' Fiscal Q1 Results Despite PC Headwinds, Wedbush Says

MT Newswires Live07-22

Logitech International (LOGI) is expected to post "decent" fiscal Q1 results as new products, stronger sales in China, margin expansion and growth across key categories help offset weak PC demand, Wedbush Securities said Wednesday.

Wedbush expects revenue to rise 5% from a year earlier to $1.21 billion, slightly above the $1.20 billion consensus estimate and near the top of Logitech's guidance range. Gaming revenue is expected to grow 10% due to the G Pro X2 Superstrike mouse and Logitech's China-for-China initiative.

The firm expects 3% growth in personal workspace products and 5% growth in video collaboration. Webcam and tablet accessory sales are expected to remain nearly unchanged. It expects adjusted earnings of $1.39 per share, compared with the $1.32 estimate. Gross margin is expected to improve to 43.7%.

Wedbush kept its outperform rating and $135 price target, saying Logitech's cash position and lack of debt could support small acquisitions, stock buybacks and a larger dividend.

Shares of Logitech were up more than 2% in Wednesday trading.

Price: 105.23, Change: +2.32, Percent Change: +2.25

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