Denim clothing company Levi's (NYSE: LEVI) will be announcing earnings results this Wednesday afternoon. Here’s what you need to know.
Levi's beat analysts’ revenue expectations last quarter, reporting revenues of $1.74 billion, up 14.1% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income 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, the market is expecting Levi’s revenue to grow 5% year on year, slowing from the 6.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Levi's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Levi’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Nike’s revenues decreased 1.1% year on year, beating analysts’ expectations by 1.1%, and Carnival reported revenues up 5.3%, in line with consensus estimates. Carnival’s stock price was unchanged following the results.
Read our full analysis of Nike’s results here and Carnival’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 6.3% on average over the last month. Levi's is up 8.1% during the same time and is heading into earnings with an average analyst price target of $27.13 (compared to the current share price of $24.90).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
