Earnings To Watch: Levi's (LEVI) Reports Q2 Results Tomorrow

Denim clothing company Levi's LEVIwill be reporting results this Thursday after the bell. Here’s what investors should know.

Levi's missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $1.53 billion, up 3.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ constant currency revenue estimates and an impressive beat of analysts’ EPS estimates.

Is Levi's a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Levi’s revenue to be flat year on year at $1.37 billion, slowing from the 1.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Levi’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Nike’s revenues decreased 12% year on year, beating analysts’ expectations by 3.4%, and Carnival reported revenues up 9.5%, topping estimates by 1.7%. Nike traded up 15.2% following the results while Carnival was also up 5.9%.

Read our full analysis of Nike’s results here and Carnival’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 5.6% on average over the last month. Levi's is up 11.5% during the same time and is heading into earnings with an average analyst price target of $19.83 (compared to the current share price of $19.54).

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