Skechers U.S.A., Inc. (SKX), the designer, developer, marketer, and distributor of footwear for men and women, is slated to report its second-quarter 2014 results on Jul 23. In the last quarter, it posted a positive surprise of 84.85%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
Skechers remains committed to focus on innovative products, open additional stores and increase distribution channels with the development of international distribution agreements to improve its sales and profitability. Moreover, international business remains a significant growth driver for the company’s sales. However, intense competition in the footwear industry and soft economic recovery may remain a drag in the quarter.
Earnings Whispers?
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. This is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Skechers is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 41 cents.
Zacks Rank: Skechers carries a Zacks Rank #3 (Hold). Though a favorable Zacks Rank increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements:
Big Lots Inc. (BIG) has an Earnings ESP of +3.33% and a Zacks Rank #2 (Buy).
Williams-Sonoma Inc. (WSM) has an Earnings ESP of +1.89% and a Zacks Rank #2.
Deckers Outdoor Corp. (DECK) has an Earnings ESP of +1.53% and a Zacks Rank #3.
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