Back to top

Analyst Blog

Zacks Equity Research

Will Skechers (SKX) Beat Earnings Estimates This Quarter?

SKX GPS DSW NWY

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Skechers U.S.A., Inc. (SKX - Analyst Report) 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 2011.

Earnings Whispers?

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.

Zacks ESP: 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. (GPS - Analyst Report), Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).

New York & Company Inc. (NWY - Snapshot Report), Earnings ESP of +33.33% and a Zacks Rank #2 (Buy).

DSW Inc. (DSW - Snapshot Report), Earnings ESP of +6.58% and a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ANI PHARMACE ANIP 29.23 +14.40%
ALLIANCE FIB AFOP 17.91 +3.41%
ZIOPHARM ONC ZIOP 3.47 +2.97%
ATLAS FINANC AFH 14.66 +2.95%
FEDERATED NA FNHC 20.37 +2.52%