Will Skechers (SKX) Beat Earnings? - Analyst Blog


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We expect Skechers USA Inc. ( SKX ) - apparel, footwear and accessories retailer - to beat expectations when it reports third-quarter 2013 results on Oct 23, 2013.

Why a Likely Positive Surprise?

Our proven model shows that Skechers is likely to beat earnings because it has the right combination of two key components.  

Positive Zacks ESP: Skechers currently has an Earnings ESP of +6.56%. This is because the Most Accurate Estimate stands at 65 cents, while the Zacks Consensus Estimate is pegged at 61 cents.

Zacks Rank #3 (Hold): Note that stocks with a Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and #5) should never be considered going into an earnings announcement.

The combination of Skechers' Zacks Rank #3 (Hold) and +6.56% ESP makes us very confident regarding a positive earnings beat on Oct 23.

What is Driving the Better-than-Expected Earnings?     

We believe that with more emphasis on the new line of products, cost containment efforts, inventory management and global distribution platform, Skechers remains well positioned to sustain the growth momentum in 2013. Management remains committed to focus on innovative products, opening of additional stores and increasing distribution channels with the development of international distribution agreements to improve its sales and profitability.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat:

Deckers Outdoor Corp. ( DECK ), Earnings ESP of +4.17% and a Zacks Rank #1 (Strong Buy).

Hanesbrands Inc. ( HBI ), Earnings ESP of +7.02% and a Zacks Rank #1 (Strong Buy).

Ralph Lauren Corporation ( RL ), Earnings ESP of +0.46% and a Zacks Rank #2 (Buy).

DECKERS OUTDOOR (DECK): Free Stock Analysis Report

HANESBRANDS INC (HBI): Free Stock Analysis Report

RALPH LAUREN CP (RL): Free Stock Analysis Report

SKECHERS USA-A (SKX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
Referenced Stocks: DECK , HBI , RL , SKX

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