Skechers (SKX) to Report Q3 Earnings: What's in Store?
Skechers USA Inc.SKX , the designer, developer and marketer of footwear, is slated to report third-quarter 2015 results on Oct 22. The big question facing investors is, whether the company will be able to continue with its positive earnings surprise streak in the quarter to be reported. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 20.2%. Let's see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Skechers is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Skechers has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $0.54. The company carries a Zacks Rank #1 (Strong Buy), which increases the predictive power of ESP. However, the company's ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
We believe that with added emphasis on the new line of products, store openings, cost containment efforts, inventory management, global distribution platform, and strong backlogs, Skechers remains well positioned to sustain its growth momentum. The company's multi-brand strategy enables it to roll out new products without cannibalizing its existing brands and helps to expand the targeted demographic profile of customers. However, the competitive retail landscape may weigh upon Skechers' performance in the quarter to be reported.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
American Eagle Outfitters, Inc. AEO has an Earnings ESP of +10.00% and a Zacks Rank #2 (Buy).
L Brands, Inc. LB has an Earnings ESP of +2.08% and a Zacks Rank #3 (Hold).
The Children's Place, Inc. PLCE has an Earnings ESP of +1.54% and a Zacks Rank #3.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.