Levi Strauss Reports Strong Earnings but Misses Revenue Estimates

Levi Strauss reported quarterly earnings of $0.33 per share, beating expectations but missed revenue estimates of $1.52 billion. While the company's EPS performance is strong, missed revenues and a Zacks Rank #4 indicate potential challenges ahead.

Date: 03-10-2024

AI Rating: 5

Levi Strauss (LEVI) reported earnings of $0.33 per share, which exceeded the Zacks Consensus Estimate of $0.31 per share, showing positive movement in earnings per share (EPS). Previously, the company had earnings of $0.28 per share the same quarter last year, indicating a year-over-year growth.

The quarterly report reflects an earnings surprise of 6.45%, demonstrating consistent performance as Levi Strauss has surpassed consensus EPS estimates in all of the last four quarters. This continued outperformance illustrates the company's ability to manage costs and achieve earnings growth effectively.

In terms of revenue, Levi Strauss reported revenues of $1.52 billion, which fell short of the Zacks Consensus Estimate by 2.25%. This result is almost unchanged from the year-ago revenues of $1.51 billion. Over the past four quarters, the company has only exceeded revenue estimates once, indicating potential challenges in top-line growth.

Furthermore, the report highlights the importance of future earnings estimates for investor sentiment and stock price direction. Currently, the consensus EPS estimate stands at $0.51 for the upcoming quarter with projected revenues of $1.76 billion. For the fiscal year, the estimate is $1.24 EPS with revenues of $6.31 billion. This outlook is crucial for assessing the company's growth trajectory.

The current status translates to a Zacks Rank #4 (Sell) for the stock, suggesting that shares may underperform the market in the near term. Investors are recommended to keep an eye on any shifts in consensus estimates, which can potentially impact stock performance, as historically, there is a strong correlation between earnings estimate revisions and stock movements.

The outlook for the Retail - Apparel and Shoes industry is noteworthy, as it currently ranks in the top 41% of over 250 Zacks industries, indicating that broader industry trends may influence the stock’s performance moving forward.

Stocks: LEVI DECK