Skechers U.S.A., Inc.
) is slated to report its second-quarter 2013 results on Jul 24.
In the last quarter, it posted a negative surprise of 27.8%.
Let's see how things are shaping up for this announcement.
Growth Factors this Past Quarter
Skechers' first-quarter 2013 bottom-line results missed the
Zacks estimates. Management stated that the quarterly earnings
were hurt by 8 cents a share due to foreign currency translation
loss of $3 million and a credit of $2.5 million to an account
that bought a major part of excess toning inventory back in
Our proven model does not conclusively show that Skechers is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 for this to happen. This is not
the case here as you will see below.
ESP for Skechers is -33.33%. This is because the Most Accurate
Estimate stands at 2 cents, while the Zacks Consensus Estimate is
pegged at 3 cents.
Zacks Rank #1 (Strong Buy):
Skechers' Zacks Rank #1 (Strong Buy) lowers the predictive power
of ESP because the Zacks Rank #1 when combined with a negative
ESP makes surprise prediction difficult. We caution against
stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
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 this quarter:
The Gap, Inc.
), Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).
New York & Company Inc.
), Earnings ESP of +33.33% and a Zacks Rank #2 (Buy).
), Earnings ESP of +6.58% and a Zacks Rank #2 (Buy).
DSW INC CL-A (DSW): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
NEW YORK & CO (NWY): Free Stock Analysis
SKECHERS USA-A (SKX): Free Stock Analysis
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