Track market-moving stories before they get noisy

Logitech International SA (USA) (NASDAQ:LOGI) is expected to deliver fiscal first-quarter results near the upper end of its guidance range when it reports on July 28, according to Wedbush analysts.

The analysts maintained their ‘Outperform’ rating and $135 price target ahead of the release, implying upside from current levels of about $104.

They expect Logitech to post revenue of $1.21 billion for the quarter, up 5% from a year earlier and slightly above the consensus estimate of $1.20 billion.

They also expect non-GAAP operating income of $215 million, at the top end of the company's guidance range of $195 million to $215 million and above the consensus estimate of $209 million.

Wedbush projects earnings per share of $1.39, compared with the consensus forecast of $1.32. The firm expects gross margin to improve by about 160 basis points year over year to 43.7%, driven by pricing improvements, although partially offset by promotional activity.

The analysts expect Logitech to report growth despite ongoing pressure on the broader PC market, supported by strength across multiple product categories and geographic markets.

"We expect Logitech to report in line growth despite category headwinds as it diversifies its strengths across categories and geographies," Wedbush wrote.

By segment, the firm forecasts 3% year-over-year growth in Personal Workspace Solutions, including 5% growth in Keyboards & Combos and 4% growth in Pointing Devices, while Webcams and Tablets & Other Accessories are expected to remain broadly flat. Video Collaboration revenue is projected to rise 5% despite a difficult comparison from the prior year, while Gaming revenue is expected to increase 10%, supported by the launch of Logitech's G Pro X2 Superstrike gaming mouse and continued momentum from its China-focused strategy.

Wedbush also highlighted Logitech's ability to expand margins despite higher component and shipping costs, citing product innovation, cost reductions, targeted promotions, and supply chain improvements. The firm noted that the company's focus on expanding its business-to-business operations, gaining market share in China, reaccelerating its video conferencing business, and strengthening its position in personal workspace solutions has helped offset broader industry challenges.

The analysts also pointed to Logitech's balance sheet as a source of flexibility, noting the company holds approximately $12 per share in cash and carries no debt, providing capacity for acquisitions, share repurchases, and dividend growth.

Logitech will report its fiscal Q1 results after the market closes on July 28.