Earnings Preview: Levi Strauss (LEVI) Q2 Earnings Expected to Decline

Core Viewpoint - Levi Strauss (LEVI) is anticipated to report a year-over-year decline in earnings due to lower revenues, which could significantly influence its near-term stock price depending on how actual results compare to consensus estimates [1][3]. Earnings Expectations - The consensus estimate for Levi Strauss is an earnings per share (EPS) of $0.13, reflecting an 18.8% decrease year-over-year [3]. - Expected revenues for the quarter are $1.37 billion, down 5.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook among covering analysts [4]. - The Most Accurate Estimate for Levi Strauss is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.99%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [9][10]. - Levi Strauss currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Levi Strauss exceeded the expected EPS of $0.28 by delivering $0.38, resulting in a surprise of +35.71% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Conclusion - While Levi Strauss does not appear to be a strong candidate for an earnings beat, investors should consider other influencing factors when making decisions regarding the stock ahead of the earnings release [17].