Proactive Investors - Levi Strauss & Co (NYSE:LEVI) is on track to deliver slightly better than expected results for the first quarter, analysts at UBS believe.
The apparel company known for its iconic jeans will hand down its financial results for the quarter ended February 25 on Wednesday, April 3, after the stock market closes.
Wall Street analysts, on average, expect Levi’s to report earnings per share (EPS) of $0.20 on revenue of $1.53 billion, representing year-over-year declines of about 41.2% and 9.5%, respectively.
“Our channel checks suggest Levi’s had a mostly solid Q1,” the bank’s analysts wrote in a note to clients, noting that the brand has reclaimed the top market share position in men’s jeans and maintains the number one spot in women’s jeans.
“We anticipate the company delivers a small 1Q 2024 beat and maintains its $1.15 to $1.25 fiscal 2024 EPS guidance. We expect this will have a slightly positive impact on sentiment, which skews moderately bearish”
The analysts explained that they see sentiment around Levi’s as moderately bearish due to short interest being above the Softlines group average at 12.9%.
They added that, while they see only a slightly positive upside/downside skew over the earnings event, they continue to rate Levi’s 'Buy.'
They awarded the stock a $23 price target, representing an upside of about 23.4% from Levi’s share price of $18.64 at the time of writing.
“Looking out over the next 12 months, we see a good probability Levi’s EPS positively surprises, leading to stock price outperformance,” they wrote.