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Logitech International S.A. LOGI reported fourth-quarter fiscal 2025 non-GAAP earnings of 93 cents per share, which beat the Zacks Consensus Estimate by 8.1%. However, the bottom line decreased 6% on a year-over-year basis, primarily due to higher promotional spending and increased operating expenses. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
In the fourth quarter of fiscal 2025, LOGI reported revenues of $1.01 billion, which came in line with the consensus mark. Compared with the year-ago quarter, the top line was flat on a reported basis and up 2% on a constant currency basis.
Logitech’s Q4 Segment Details
Revenues from Keyboards & Combos improved 2% year over year to $220.6 million. Revenues from the Pointing Devices category grew 9% to $185.9 million, Tablet Accessories increased 4% to $58 million and Webcams increased 3% to $77.9 million.
Our model estimates for Keyboards & Combos, Pointing Devices, Tablet Accessories and Webcams categories were pegged at $215.8 million, $170.9 million, $59.7 million and $74.1 million, respectively.
Gaming revenues decreased 4% year over year to $261.8 million, and Video Collaboration sales declined 3% to $143.2 million. Our model estimates for Gaming and Video Collaboration revenues were pegged at $270.9 million and $145.6 million, respectively.
Revenues from the Headsets product category fell 6% to $42.7 million, while Other categories’ sales plunged 21% to $20.2 million. Our model estimates for Headsets and Other categories were pegged at $46.1 million and $22.5 million, respectively.
Logitech International S.A. Price, Consensus and EPS Surprise
Logitech International S.A. price-consensus-eps-surprise-chart | Logitech International S.A. Quote
Logitech’s Margins & Operating Metrics
The non-GAAP gross profit declined to $439.4 million from $441.4 million reported in the year-ago quarter. The non-GAAP gross margin contracted 10 basis points (bps) from the prior-year quarter to 43.5%, primarily due to strategic promotional spending and unfavorable foreign currency exchange rates, which more than offset the benefit of a significant reduction in manufacturing costs.
Non-GAAP operating expenses increased 8.2% year over year to $305.9 million. As a percentage of revenues, non-GAAP operating expenses increased 230 bps to 30.3%.
The non-GAAP operating income declined 15.8% to $133.5 million from $158.6 million reported in the year-ago quarter. The operating margin contracted 250 basis points to 13.2%, primarily due to lower gross margin and higher operating expenses as a percentage of revenues.