Skechers USA Inc.
) - apparel, footwear and accessories retailer - to beat
expectations when it reports third-quarter 2013 results on Oct
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
Positive Zacks ESP:
Skechers currently has an
of +6.56%. This is because the Most Accurate Estimate stands at
65 cents, while the Zacks Consensus Estimate is pegged at 61
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
What is Driving the Better-than-Expected
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
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.
), Earnings ESP of +4.17% and a Zacks Rank #1 (Strong Buy).
), Earnings ESP of +7.02% and a Zacks Rank #1 (Strong Buy).
Ralph Lauren Corporation
), Earnings ESP of +0.46% and a Zacks Rank #2 (Buy).
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SKECHERS USA-A (SKX): Free Stock Analysis
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