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Factors That Set the Tone for Skechers (SKX) Q1 Earnings
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Skechers U.S.A., Inc. (SKX - Free Report) is slated to release first-quarter 2017 results on Apr 20, 2017. In the trailing four quarters, it had underperformed the Zacks Consensus Estimate by an average of 14.8%. In the preceding quarter, the company witnessed a negative earnings surprise of 63.6%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds now is, whether Skechers will be able to post positive earnings surprise in the first quarter. The current Zacks Consensus Estimate for the quarter under review is 55 cents compared with 63 cents reported in the year-ago period. We note that the Zacks Consensus Estimate has increased by a penny in the past seven days, indicating that analysts covering the stock are optimistic about performance. Analysts polled by Zacks expect revenues of $1,067 million, up more than 9% from the year-ago quarter.
Skechers forms part of the Consumer Discretionary sector, which occupies a space in the bottom 44% of the Zacks Classified sectors (9 out of 16). As per the latest Earnings Preview, total earnings and revenues for the sector are anticipated to increase by 3.8% and 11.3%, respectively. We noted that the Consumer Discretionary sector has outperformed the broader market in the past three months. In the said time frame, this Zacks categorized sector gained 4.8%, while S&P 500 index advanced 2.5%.
Factors at Play
With greater emphasis on new line of products, cost containment efforts, inventory management and global distribution platform, Skechers remains well positioned to sustain momentum. The company is also enhancing eCommerce platform. The company currently operates eCommerce sites in Chile, Germany and the U.K. Further, it remained optimistic about performance in first-quarter 2017. Management had earlier highlighted that it expects to deliver flat to slightly positive sales for domestic wholesale business, growth in international business and increase in company-owned retail stores. Further, management had forecast first-quarter net sales in the band of $1.05–$1.075 billion and earnings per share in the range of 50–55 cents.
What Does the Zacks Model Unveil?
Our proven model shows that Skechers is likely to beat earnings estimates this quarter. A stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Skechers has an Earnings ESP of +7.27% as the Most Accurate estimate stands at 59 cents and the Zacks Consensus Estimate is pegged lower at 55 cents. So the ensuing positive Earnings ESP and a Zacks Rank #3 make us reasonably confident of an earnings beat.
Skechers U.S.A., Inc. Price, Consensus and EPS Surprise
J. C. Penney Company, Inc. has an Earnings ESP of +70.00% and a Zacks Rank #3.
Nordstrom, Inc. (JWN - Free Report) has an Earnings ESP of + 3.70% and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Factors That Set the Tone for Skechers (SKX) Q1 Earnings
Skechers U.S.A., Inc. (SKX - Free Report) is slated to release first-quarter 2017 results on Apr 20, 2017. In the trailing four quarters, it had underperformed the Zacks Consensus Estimate by an average of 14.8%. In the preceding quarter, the company witnessed a negative earnings surprise of 63.6%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds now is, whether Skechers will be able to post positive earnings surprise in the first quarter. The current Zacks Consensus Estimate for the quarter under review is 55 cents compared with 63 cents reported in the year-ago period. We note that the Zacks Consensus Estimate has increased by a penny in the past seven days, indicating that analysts covering the stock are optimistic about performance. Analysts polled by Zacks expect revenues of $1,067 million, up more than 9% from the year-ago quarter.
Skechers forms part of the Consumer Discretionary sector, which occupies a space in the bottom 44% of the Zacks Classified sectors (9 out of 16). As per the latest Earnings Preview, total earnings and revenues for the sector are anticipated to increase by 3.8% and 11.3%, respectively. We noted that the Consumer Discretionary sector has outperformed the broader market in the past three months. In the said time frame, this Zacks categorized sector gained 4.8%, while S&P 500 index advanced 2.5%.
Factors at Play
With greater emphasis on new line of products, cost containment efforts, inventory management and global distribution platform, Skechers remains well positioned to sustain momentum. The company is also enhancing eCommerce platform. The company currently operates eCommerce sites in Chile, Germany and the U.K. Further, it remained optimistic about performance in first-quarter 2017. Management had earlier highlighted that it expects to deliver flat to slightly positive sales for domestic wholesale business, growth in international business and increase in company-owned retail stores. Further, management had forecast first-quarter net sales in the band of $1.05–$1.075 billion and earnings per share in the range of 50–55 cents.
What Does the Zacks Model Unveil?
Our proven model shows that Skechers is likely to beat earnings estimates this quarter. A stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Skechers has an Earnings ESP of +7.27% as the Most Accurate estimate stands at 59 cents and the Zacks Consensus Estimate is pegged lower at 55 cents. So the ensuing positive Earnings ESP and a Zacks Rank #3 make us reasonably confident of an earnings beat.
Skechers U.S.A., Inc. Price, Consensus and EPS Surprise
Skechers U.S.A., Inc. Price, Consensus and EPS Surprise | Skechers U.S.A., Inc. Quote
Other Stocks Poised to Beat Earnings Estimates
Here are some other 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 +7.62% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
J. C. Penney Company, Inc. has an Earnings ESP of +70.00% and a Zacks Rank #3.
Nordstrom, Inc. (JWN - Free Report) has an Earnings ESP of + 3.70% and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks ""Strong Sells"" absolutely free >>.