On Thursday, July 08, Levi Strauss (NYSE:LEVI) will release its latest earnings report. Benzinga’s report can help you figure out the ins and outs of the earnings release.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Levi Strauss EPS will likely be near $0.09 while revenue will be around $1.21 billion, according to analysts. In the same quarter last year, Levi Strauss posted a loss of $0.48 per share on sales of $497.54 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the “consensus estimates”; these consensus estimates can have a significant effect on a company’s performance during an earnings release.
When a company posts earnings or revenue above or below a consensus estimate, it has posted an “earnings surprise”, which can really move a stock depending on the difference between actual and estimated values.
If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 118.75%. Revenue would be up 143.2% on a year-over-year basis. The company’s reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.25 | 0.15 | -0.22 | -0.45 |
| EPS Actual | 0.34 | 0.20 | 0.08 | -0.48 |
| Revenue Estimate | 1.25 B | 1.34 B | 822.24 M | 574.13 M |
| Revenue Actual | 1.31 B | 1.39 B | 1.06 B | 497.54 M |
Stock Performance
Shares of Levi Strauss were trading at $28.27 as of July 06. Over the last 52-week period, shares are up 126.87%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Levi Strauss is scheduled to hold the call at 17:00:00 ET and can be accessed here.
