Why Levi Strauss (LEVI) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Levi Strauss (LEVI) has consistently beaten earnings estimates and is well-positioned for future earnings reports, particularly with a recent average surprise of 19.94% over the last two quarters [1][2]. Earnings Performance - For the last reported quarter, Levi Strauss achieved earnings of $0.38 per share, surpassing the Zacks Consensus Estimate of $0.28 per share, resulting in a surprise of 35.71% [2]. - In the previous quarter, the company was expected to post earnings of $0.48 per share but delivered $0.50 per share, yielding a surprise of 4.17% [2]. Earnings Estimates and Predictions - Recent estimates for Levi Strauss have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Levi Strauss is +2.94%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [8]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of another earnings beat, with historical data indicating that stocks with this combination beat consensus estimates nearly 70% of the time [6][8]. Importance of Earnings ESP - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]. - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [9].