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Levi Strauss to Post Q3 Earnings: What Investors Should Know
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Levi Strauss & Co. (LEVI - Free Report) is likely to register bottom and top-line growth when it reports reports third-quarter fiscal 2024 earnings on Oct. 2, after the closing bell. The Zacks Consensus Estimate for revenues is $1.6 billion, which indicates a rise of 2.7% from the year-ago quarter’s level.
The consensus estimate for quarterly earnings has been stable over the past 30 days at 31 cents per share and indicates an increase of 10.7% from the year-earlier quarter’s tally.
The company has an average trailing four-quarter earnings surprise of 19.4%. It delivered an earnings surprise of 45.5% in the last reported quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Factors to Influence LEVI’s Q3 Results
Levi Strauss’ quarterly performance is likely to have benefited from omnichannel initiatives and brand strength, including jeanswear. 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 solid direct-to-consumer business is likely to have bolstered the quarterly performance.
LEVI has been elevating brands, investing in digital tools and capabilities and pacing up efforts to diversify across geographies, product categories and distribution channels. As part of its ongoing global productivity effort, Project Fuel, the company is on track to transition from a mainly owned-and-operated distribution and logistics network in the United States and Europe, to a balanced owned and third-party logistics provider. Such strengths are likely to have driven its performance.
The Zacks Consensus Estimate for quarterly revenues is currently pegged at $789 million for Americas, $393 million for Europe and $252 million for Asia, indicating respective increases of 2.9%, 2.3% and 2% year over year.
However, a challenging operating backdrop, including supply-chain disruptions, inflationary pressures and foreign currency translations, is likely to have been a concern. These headwinds, coupled with deleveraged selling, general and administrative costs, are expected to have somewhat weighed on the company’s profitability.
What the Zacks Model Predicts
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 3.
Valuation Picture of LEVI Stock
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 14.37x, which is below the five-year high of 141.93x and the Textile - Apparel industry’s average of 16.47x, 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 12.2% in the past three months against the industry's 1.8% decline.
Stocks With the Favorable Combination
Here are some companies, which, according to our model, have the right combination of elements to beat on earnings:
Domino's Pizza (DPZ - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 2.
The company is likely to register a bottom-line decline when it reports third-quarter results. The Zacks Consensus Estimate for quarterly earnings per share (EPS) of $3.68 indicates a plunge of 12% from the year-ago quarter’s level. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 7.2% from the figure in the prior-year quarter. DPZ has a trailing four-quarter earnings surprise of 11.2%, on average.
Boot Barn (BOOT - Free Report) currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports second-quarter results. The Zacks Consensus Estimate for quarterly EPS of 93 cents indicates a rise of 2.2% from the year-ago quarter.
Boot Barn’s top line is expected to rise year over year. The consensus estimate for quarterly revenues is pegged at $421.8 million, which indicates an improvement of 12.6% from the figure in the prior-year quarter. BOOT has a trailing four-quarter earnings surprise of 7.1%, on average.
Gap (GAP - Free Report) currently has an Earnings ESP of +1.05% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fiscal second-quarter results. The Zacks Consensus Estimate for quarterly EPS of 57 cents indicates a dip of 3.4% from the year-ago number.
Gap’s top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $3.8 billion, which implies growth of 1% from the prior-year quarter. GAP has a trailing four-quarter earnings surprise of 142.8%, on average.
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Levi Strauss to Post Q3 Earnings: What Investors Should Know
Levi Strauss & Co. (LEVI - Free Report) is likely to register bottom and top-line growth when it reports reports third-quarter fiscal 2024 earnings on Oct. 2, after the closing bell. The Zacks Consensus Estimate for revenues is $1.6 billion, which indicates a rise of 2.7% from the year-ago quarter’s level.
The consensus estimate for quarterly earnings has been stable over the past 30 days at 31 cents per share and indicates an increase of 10.7% from the year-earlier quarter’s tally.
The company has an average trailing four-quarter earnings surprise of 19.4%. It delivered an earnings surprise of 45.5% in the last reported quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Factors to Influence LEVI’s Q3 Results
Levi Strauss’ quarterly performance is likely to have benefited from omnichannel initiatives and brand strength, including jeanswear. 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 solid direct-to-consumer business is likely to have bolstered the quarterly performance.
LEVI has been elevating brands, investing in digital tools and capabilities and pacing up efforts to diversify across geographies, product categories and distribution channels. As part of its ongoing global productivity effort, Project Fuel, the company is on track to transition from a mainly owned-and-operated distribution and logistics network in the United States and Europe, to a balanced owned and third-party logistics provider. Such strengths are likely to have driven its performance.
The Zacks Consensus Estimate for quarterly revenues is currently pegged at $789 million for Americas, $393 million for Europe and $252 million for Asia, indicating respective increases of 2.9%, 2.3% and 2% year over year.
However, a challenging operating backdrop, including supply-chain disruptions, inflationary pressures and foreign currency translations, is likely to have been a concern. These headwinds, coupled with deleveraged selling, general and administrative costs, are expected to have somewhat weighed on the company’s profitability.
What the Zacks Model Predicts
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 & Co. Price and EPS Surprise
Levi Strauss & Co. price-eps-surprise | Levi Strauss & Co. Quote
Levi Strauss has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Valuation Picture of LEVI Stock
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 14.37x, which is below the five-year high of 141.93x and the Textile - Apparel industry’s average of 16.47x, 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 12.2% in the past three months against the industry's 1.8% decline.
Stocks With the Favorable Combination
Here are some companies, which, according to our model, have the right combination of elements to beat on earnings:
Domino's Pizza (DPZ - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 2.
The company is likely to register a bottom-line decline when it reports third-quarter results. The Zacks Consensus Estimate for quarterly earnings per share (EPS) of $3.68 indicates a plunge of 12% from the year-ago quarter’s level. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 7.2% from the figure in the prior-year quarter. DPZ has a trailing four-quarter earnings surprise of 11.2%, on average.
Boot Barn (BOOT - Free Report) currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports second-quarter results. The Zacks Consensus Estimate for quarterly EPS of 93 cents indicates a rise of 2.2% from the year-ago quarter.
Boot Barn’s top line is expected to rise year over year. The consensus estimate for quarterly revenues is pegged at $421.8 million, which indicates an improvement of 12.6% from the figure in the prior-year quarter. BOOT has a trailing four-quarter earnings surprise of 7.1%, on average.
Gap (GAP - Free Report) currently has an Earnings ESP of +1.05% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fiscal second-quarter results. The Zacks Consensus Estimate for quarterly EPS of 57 cents indicates a dip of 3.4% from the year-ago number.
Gap’s top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $3.8 billion, which implies growth of 1% from the prior-year quarter. GAP has a trailing four-quarter earnings surprise of 142.8%, on average.