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Skechers (SKX) Q2 Earnings: What's in Store for the Stock?

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Skechers USA Inc. (SKX - Free Report) , the designer, developer and marketer of footwear, is slated to report second-quarter 2016 results on Jul 21. The big question facing investors is, whether the company will be able to deliver a positive earnings surprise in the quarter to be reported. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 21%. 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 51 cents. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, its 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, a 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 expand the targeted demographic profile of customers. However, the competitive retail landscape and foreign currency headwinds may weigh upon Skechers’ performance in the quarter to be reported.

SKECHERS USA-A Price, Consensus and EPS Surprise

SKECHERS USA-A Price, Consensus and EPS Surprise | SKECHERS USA-A Quote

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:

Amazon.com, Inc. (AMZN - Free Report) has an Earnings ESP of +37.72% and a Zacks Rank #3.

Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +17.07% and a Zacks Rank #3.

Caterpillar Inc. (CAT - Free Report) has an Earnings ESP of +2.08% and a Zacks Rank #3.

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