Yahoo Finance Here's How Levi Strauss (LEVI) is Placed Ahead of Q2 Earnings
Levi Strauss & Co. LEVI is likely to register top and bottom-line growth when it reports second-quarter fiscal 2024 earnings on Jun 26, after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.45 billion, which indicates a rise of 8.4% from the year-ago quarter’s level.
The consensus estimate for quarterly earnings has been stable over the past 30 days at 32 cents per share and indicates an increase of 175% from the year-earlier quarter’s numbers.
The company delivered a trailing four-quarter earnings surprise of 16.4%, on average. In the last reported quarter, its earnings beat the consensus mark by 23.8%.
Key Factors
Levi Strauss’ omnichannel initiatives and brand strength appear encouraging. The company has been strengthening its omni capabilities, including Buy Online, Pick-up in Store, line-queuing, same-day delivery, mobile checkout and return capabilities, including contactless returns. Its direct-to-consumer business has been performing well.
LEVI has been elevating brands, investing in digital tools and capabilities, and pacing up efforts to diversify across geographies, product categories and distribution channels. Management remains impressed by the encouraging trends across the globe, particularly in Europe. These strengths are likely to have driven the company’s performance.
However, a challenging operating backdrop, including supply-chain disruptions, inflationary pressures and foreign currency translations, are likely to have been concerning. These headwinds, coupled with deleveraged selling, general and administrative costs, are expected to have somewhat weighed on the company’s profitability.
Zacks Model
Our proven model doesn’t conclusively predict an earnings beat for Levi Strauss this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Levi Strauss has an Earnings ESP of 0.00% and a Zacks Rank of 2 at present.
Valuation Picture
From a valuation perspective, Levi Strauss offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 11.79x, which is below the five-year high of 141.93x and the Retail - Apparel and Shoes industry’s average of 16.35x, the stock offers compelling value for investors seeking exposure to the sector. Additionally, the current Value Score of A adds weight to this optimistic view.
The recent market movements show that LEVI’s shares have gained 24.2% in the past three months compared with the industry's 2.4% growth.
Stocks With the Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Domino's Pizza DPZ currently has an Earnings ESP of +2.18% and a Zacks Rank of 2. The company is likely to register bottom-line improvement when it reports second-quarter results. The Zacks Consensus Estimate for quarterly earnings per share (EPS) is pinned at $3.66, indicating growth of 18.8% from the year-ago quarter’s level.
Domino's Pizza’s top line is expected to rise year over year. The consensus estimate for quarterly revenues is pegged at $1.10 billion, which indicates an improvement of 7.8% from the figure reported in the prior-year quarter. DPZ has a trailing four-quarter earnings surprise of 9.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boot Barn BOOT currently has an Earnings ESP of +8.91% and a Zacks Rank of 3. The company is likely to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly EPS is pegged at $1.01, indicating a decline of 9% from the year-ago quarter's figure.
Boot Barn’s top line is expected to rise year over year. The consensus estimate for quarterly revenues is pegged at $409.5 million, which indicates an improvement of 6.7% from the figure reported in the prior-year quarter. BOOT has a trailing four-quarter earnings surprise of 12.4%, on average.
Ross Stores ROST currently has an Earnings ESP of +0.95% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fiscal second-quarter results. The Zacks Consensus Estimate for quarterly EPS of $1.49 indicates an increase of 12.9% from the year-ago reported number.
Ross Stores’ top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $5.24 billion, which implies growth of 6.1% from the prior-year quarter's level. ROST has a trailing four-quarter earnings surprise of 10.6%, on average.
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Domino's Pizza Inc (DPZ) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
