Skechers U.S.A., Inc. (SKX Quick QuoteSKX ) is likely to register both top and bottom-line growth from the respective year-ago reported figures when it reports third-quarter 2022 earnings on Oct 25, after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,842 million, indicating growth of 18.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for third-quarter earnings per share currently stands at 74 cents, suggesting an improvement of 12.1% from the year-ago period’s tally. We note that the consensus mark has been stable over the past 30 days.
This designer, developer, marketer and distributor of lifestyle and performance footwear delivered an earnings surprise of 7.4% in the last reported quarter. SKX has a trailing four-quarter earnings surprise of 8.2%, on average.
Key Factors to Note
Skechers’ greater emphasis on a new line of products, store-remodeling projects, prudent inventory management and momentum in direct-to-consumer business is likely to have contributed to its third-quarter performance. SKX’s international business remains a significant sales driver. Management continues to expand SKX’s global reach in the footwear market through distribution networks, subsidiaries and joint ventures.
Management has been leveraging Skechers’ resources for a while to enhance digital capabilities, including augmenting website features and mobile applications. Strong wholesale and direct-to-consumer businesses continue aiding SKX’s overall performance. Also, efforts and innovation related to comfort technology footwear are yielding results.
All the aforesaid factors are most likely to have boosted Skechers’ performance during the quarter under review. On its last earnings call, management projected sales between $1.80 billion and $1.85 billion and earnings in the band of 70-75 cents a share for the quarter under review.
While the aforementioned factors raise optimism on the stock, we cannot ignore the global supply-chain issues. Any deleverage in SG&A and operating expenses might have been added deterrents.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Skechers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Skechers has a Zacks Rank #3 and an Earnings ESP of +0.23%.
Other Stocks Poised to Beat Earnings Estimates
Here are some more companies worth considering as our model shows that these too have the right combination of elements to beat on earnings this season:
BJ’s Wholesale (BJ Quick QuoteBJ ) has an Earnings ESP of +2.98% and a Zacks Rank of 1, currently. BJ is likely to register top-line growth from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.66 billion, suggesting 9.3% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ’s Wholesale’s earnings for the fiscal third quarter is pegged at 80 cents, suggesting a 12.1% decline from 91 cents reported in the year-ago fiscal quarter. The consensus mark has moved up a penny in the past 30 days.
Costco (COST Quick QuoteCOST ) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3. COST is expected to register top and bottom-line growth from the respective year-ago fiscal quarter’s readings when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $54.98 billion, suggesting growth of 9.2% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for Costco’s quarterly earnings has moved up 2.3% in the past 30 days. The consensus estimate for earnings suggests 6.1% growth from the year-ago fiscal quarter’s reported number. COST delivered an earnings beat of 7.7%, on average, in the trailing four quarters.
Ralph Lauren (RL Quick QuoteRL ) currently has an Earnings ESP of +0.08% and a Zacks Rank #3. RL is anticipated to register top-line growth from the prior-year fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.6 billion, indicating an improvement of 3.7% from the figure reported in the prior-year fiscal quarter.
However, the Zacks Consensus Estimate for Ralph Lauren’s earnings of $2.07 per share has moved down 1.4% in the past 30 days. The consensus estimate suggests a rise of 21% from 99 cents reported in the year-ago fiscal quarter. RL delivered an earnings beat of 34.9%, on average, in the trailing four quarters.
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