Yahoo Finance Skechers (SKX) to Post Q1 Earnings: What's in the Cards?
Skechers U.S.A., Inc. SKX is likely to register top-line growth from the year-ago reported figure when it posts first-quarter 2023 earnings on Apr 27, after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,834 million, indicating a rise of 0.8% from the prior-year quarter’s reported figure.
The consensus estimate for first-quarter earnings per share is pegged at 60 cents, suggesting a decrease of 22.1% from the year-ago period’s actual. We note that the consensus mark has been unchanged over the past 30 days.
This designer, developer, marketer and distributor of lifestyle and performance footwear delivered an earnings surprise of 26.3% in the last reported quarter. SKX has a trailing four-quarter earnings surprise of 3.8%, 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 the company’s performance in the quarter under review. SKX’s international business has been a significant sales driver. Management continues to expand SKX’s global reach in the footwear market through distribution networks, subsidiaries and joint ventures.
Skechers has also been enhancing its digital capabilities, including augmenting its website features and mobile applications. Strong wholesale and direct-to-consumer businesses have been aiding SKX’s overall performance. Also, efforts and innovation related to comfort technology footwear have been yielding results.
All the aforesaid factors are quite likely to have benefited Skechers’ performance in the quarter under review. On its last reported quarter's earnings call, management projected sales between $1.80 billion and $1.85 billion, and earnings of 55-60 cents a share for the quarter under review.
While the aforementioned factors raise optimism about the stock, we cannot ignore the inflationary pressures. Any deleverage in SG&A and operating expenses are likely to have been added deterrents. Management has cited that the domestic wholesale marketplace has been gradually overcoming higher inventory levels and supply-chain bottlenecks but might result in declines in the first half of the year. These weaknesses are anticipated to have weighed on the company’s bottom line in the quarter under review.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Skechers U.S.A., Inc. Price and EPS Surprise
Skechers U.S.A., Inc. price-eps-surprise | Skechers U.S.A., Inc. Quote
Although Skechers has a Zacks Rank of 3, its Earnings ESP of -2.30% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this season:
Boyd Gaming BYD currently has an Earnings ESP of +3.71% and a Zacks Rank of 2. BYD is likely to register top and bottom-line growth when it reports first-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $885.5 million, suggesting 2.9% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Boyd Gaming’s first-quarter earnings is pegged at $1.51, suggesting 7.9% growth from the $1.40 reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. BYD has a trailing four-quarter earnings surprise of 13.6%, on average.
Marriott International MAR currently has an Earnings ESP of +3.04% and a Zacks Rank of 2.
MAR is likely to register top and bottom-line growth when it reports first-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $5.3 billion, suggesting 25.7% growth from the figure reported in the prior-year quarter.
The consensus mark for Marriott’s first-quarter earnings is pegged at $1.85, suggesting year-over-year growth of 48%. The consensus mark has been unchanged in the past 30 days. MAR has a trailing four-quarter earnings surprise of 12.8%, on average.
lululemon athletica LULU currently has an Earnings ESP of +2.07% and a Zacks Rank of 3. LULU is likely to register top-line improvement when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $1.9 billion, calling for growth of 19.5% from the prior-year quarter’s reported figure. The consensus mark for the quarterly EPS of $1.93 suggests a 30.4% increase from the figure reported in the year-ago quarter. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marriott International, Inc. (MAR) : Free Stock Analysis Report
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
