What to Expect When Levi Strauss Reports After the Close

Companies and Brands

Published: October 8, 2019 11:30 am

Last Updated: January 30, 2020 2:54 pm

Levi Strauss & Co. (NYSE: LEVI) is scheduled to release its third-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $0.28 in earnings per share (EPS) and $1.44 billion in revenue.

During the second quarter, net revenues grew 5% on a reported basis and 9% on a constant-currency basis.

At that time, the company’s direct-to-consumer business grew reported revenues by 9%, primarily due to performance and expansion of the retail network and e-commerce growth. The company had 78 more company-operated stores at the end of the second quarter of 2019 than it did a year prior. The company’s wholesale business grew reported revenues by 3%, reflecting growth in all the regions.

Second-quarter net income decreased $49 million, primarily due to $29 million of costs associated with the company’s IPO, inclusive of $25 million of underwriting commissions paid on behalf of the selling stockholders.

Excluding Tuesday’s move, Levi had underperformed the broad markets, with the stock down about 12% year to date. In the past quarter, the stock was down 16%.

A few analysts weighed in on Levi ahead of the report:

Guggenheim has a Buy rating.
Merrill Lynch has a Buy rating and a $20 price target.
Goldman Sachs has a Sell rating with a $19 price target.

Shares of Levi Strauss traded down less than 1% to $19.67 on Tuesday, in a post-IPO range of $16.00 to $24.50. The consensus price target is $22.86.

ALSO READ: SunTrust Has 5 Sizzling Health Care High-Conviction Picks for Q4

Travel Cards Are Getting Too Good To Ignore (sponsored)

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.