Levi Strauss Gears Up For Q2 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

Levi Strauss & Co. (LEVI) is preparing to announce its Q2 earnings. Analysts anticipate a slight dip in earnings per share compared to last year, but recent activity includes several adjusted price targets. This blog post breaks down the key figures, expert opinions, and what it all means for investors considering LEVI stock.

Levi's: Are Your Jeans About to Pay Off?

Levi Strauss & Co., the name behind those jeans we all know and probably own, is about to spill the beans on how they've been doing this past quarter (Q2). That's happening after the stock market closes on Thursday, July 10th. Now, if you've got a few quid invested or are just curious, this is worth a look, especially as some experts reckon it might be a slightly tougher time than last year.

So, what are the smart money folks expecting?

Analysts – the financial whizzes who spend their days studying companies like Levi's – think they'll announce earnings of about 13 cents per share. "Earnings per share" or EPS might sound a bit jargony, but it's really just how much profit the company makes for every share floating around. Think of it like slicing up a pizza – EPS is how big a slice each shareholder gets. Last year, that slice was 16 cents for the same period. So, this year, the analysts are predicting a slightly smaller slice.

They're also forecasting that Levi's will rake in £1.37 billion in revenue. That's a huge pile of cash – roughly the price of 685,000 brand new Ford Fiestas! But, and it's a significant but, it's less than the £1.44 billion they made this time last year. So, the experts are bracing for a bit of a dip.

Dockers: What's Going On There?

There’s been a bit of a shake-up at Levi's HQ recently. On May 20th, they shook hands on a deal to sell off their Dockers brand to a company called Authentic Brands Group. Dockers, you know, those comfy chinos your dad probably rocks? They've been part of the Levi's family for ages. Selling them off could mean Levi's is sharpening its focus on what it does best – jeans! It's a bit like a chef deciding to specialise in one amazing dish instead of trying to do everything.

Despite the predicted lower earnings, Levi's shares actually perked up a bit on Wednesday, closing at $19.23. That's a 1.9% jump – not massive, but a welcome boost if you're holding those shares.

What the Wall Street Gurus Are Saying

Right, let's dive into what the people who pore over Levi's numbers day in, day out, are saying about the stock. Remember, these are just opinions, but they can give us a clue as to what the big players are thinking:

• Citigroup (Paul Lejuez): This analyst is playing it cool with a "Neutral" rating, suggesting the stock probably won't shoot to the moon or plummet into the abyss. However, he did nudge up his price target (what he thinks the stock is worth) from $14 to $19. He’s got a decent track record, getting it right about 65% of the time.
• Telsey Advisory Group (Dana Telsey): This analyst is feeling more upbeat, giving Levi’s an "Outperform" rating, meaning she reckons the stock will do better than most. She's also bumped up her price target from $19 to $21. She’s accurate around 60% of the time.
• Wells Fargo (Ike Boruchow): Another optimist in the house! He's slapped an "Overweight" rating on Levi's, which is pretty much the same as "Outperform." And he's raised his price target from $20 to $22. What’s interesting is, he's one of the most accurate, getting it right about 71% of the time. So, his opinion might carry a bit more weight (no pun intended!).
• Morgan Stanley (Alex Straton): This analyst is sitting on the fence with an "Equal-Weight" rating, similar to "Neutral." However, and here’s the kicker, he's lowered his price target from $17 to $16. His accuracy rate is 65%.
• Stifel (Drew Crum): This analyst is telling people to "Buy," meaning he thinks the stock is a good investment. But, hold on a minute, he's also slashed his price target from $25 to $20. He's right about 69% of the time.

So, what does all this jargon mean? Well, these analysts are basically trying to predict whether a stock will go up or down. "Buy," "Outperform," and "Overweight" are all thumbs-up signals. "Neutral" and "Equal-Weight" mean they're not expecting much to happen. It’s vital to remember that they don't have crystal balls, but their opinions can sway the market.

Key Takeaways for Your Pocket

• Levi Strauss is expected to announce lower earnings per share (13 cents) and revenue (£1.37 billion) for Q2 compared to last year. Not the best news, but hardly a disaster.
• The company is selling its Dockers brand – potentially a sign they’re going back to their roots: jeans.
• The analysts are all over the place, some raising their price targets, others lowering them. In other words, nobody really knows for sure what's going to happen.
• Wells Fargo's Ike Boruchow, who's got a pretty good track record, is still keen on Levi's, showing continued confidence in the brand by boosting the price target from $20 to $22.
• Keep an eye out for the actual earnings release on July 10th to see if the reality matches the analysts' predictions.
• And finally, remember those analyst ratings are just educated guesses, not guarantees. Do your own homework before making any investment decisions! After all, it's your money on the line.