Denim clothing company Levi's (NYSE:LEVI) will be reporting earnings tomorrow after market hours. Here’s what investors should know.
Levi's met analysts’ revenue expectations last quarter, reporting revenues of $1.44 billion, up 7.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ earnings 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 2.8% year on year to $1.55 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.
The majority of analysts covering the company have 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 Q3 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 15.2%, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Scholastic traded up 6% following the results.
Read our full analysis of Carnival’s results here and Scholastic’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 4.6% on average over the last month. Levi's is up 13.8% during the same time and is heading into earnings with an average analyst price target of $23.02 (compared to the current share price of $21.85).
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