Levi Strauss & Co. (NYSE:LEVI) has risen more than 9% during today’s trading session. The company is scheduled to report its results for the first quarter of fiscal 2020 after the closing bell today. Analysts expect Levi Strauss to report an EPS of $0.35 and revenue of $1.47 billion. Since the first quarter ended in February, I don’t think that coronavirus volatility will impact the results.
In the fourth quarter, the company’s earnings beat its estimates. The revenues lagged analysts’ expectations and fell 1.4% YoY to $1.57 billion due to lower sales in department stores. Protests in Hong Kong also disrupted the demand in Asian markets. Levi’s revenues grew 4% in the third quarter.
Levi Strauss stock rose over 15% on Monday and ended the day at $10.94. The broader markets recovered due to positive news related to the coronavirus. Investors reacted to US coronavirus cases increasing at a slow rate since March 31. On Monday, New York Governor Andrew Cuomo also said that the death toll was flat in New York for two days, as cited by The New York Times. As of Monday, there were nearly 357,000 coronavirus cases and more than 10,300 deaths in the US.
Impact of coronavirus on Levi Strauss stock
Analysts’ views on Levi Strauss stock
Levi Strauss stock has declined over 43% year-to-date. Analysts have set the company’s 12-month target price at $19.63, which is over 79% higher than its April 6 price of $10.94. Among the nine analysts covering Levi Strauss, six recommend a “buy,” two recommend a “hold,” and only one recommends a “sell.”