Denim clothing company Levi's (NYSE: LEVI) will be reporting results this Wednesday after market hours. Here’s what to look for.
Levi's beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $1.54 billion, up 7% year on year. It was a strong quarter for the company, with a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.
Is Levi's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Levi’s revenue to decline 2.4% year on year to $1.71 billion, a reversal from the 6.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.39 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Levi's has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Levi’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Nike posted flat year-on-year revenue, beating analysts’ expectations by 1.7%, and Carnival reported revenues up 6.6%, falling short of estimates by 0.6%. Nike traded down 10.5% following the results while Carnival was up 13.6%.
Read our full analysis of Nike’s results here and Carnival’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Levi’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $27.38 (compared to the current share price of $21.22).
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