Denim clothing company Levi's (NYSE:LEVI) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
Levi's missed analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $1.52 billion, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ constant currency revenue estimates.
Is Levi's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Levi’s revenue to grow 5.2% year on year to $1.73 billion, improving from the 3.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.48 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’s revenues decreased 7.7% year on year, beating analysts’ expectations by 2%, and United Airlines reported revenues up 7.8%, topping estimates by 2.4%. Nike’s stock price was unchanged after the results, while United Airlines was down 2.3%.
Read our full analysis of Nike’s results here and United Airlines’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 4.9% on average over the last month. Levi's is up 5.5% during the same time and is heading into earnings with an average analyst price target of $22.07 (compared to the current share price of $18.30).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.