Yahoo Finance Skechers U.S.A., Inc. Just Recorded A 21% EPS Beat: Here's What Analysts Are Forecasting Next
Skechers U.S.A., Inc. (NYSE:SKX) just released its latest first-quarter results and things are looking bullish. The company beat forecasts, with revenue of US$2.3b, some 2.3% above estimates, and statutory earnings per share (EPS) coming in at US$1.33, 21% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Skechers U.S.A
After the latest results, the 13 analysts covering Skechers U.S.A are now predicting revenues of US$8.85b in 2024. If met, this would reflect a modest 7.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.6% to US$4.04. In the lead-up to this report, the analysts had been modelling revenues of US$8.79b and earnings per share (EPS) of US$3.93 in 2024. So the consensus seems to have become somewhat more optimistic on Skechers U.S.A's earnings potential following these results.
There's been no major changes to the consensus price target of US$73.19, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Skechers U.S.A, with the most bullish analyst valuing it at US$88.00 and the most bearish at US$60.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Skechers U.S.A shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Skechers U.S.A's revenue growth is expected to slow, with the forecast 9.8% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% annually. So it's pretty clear that, while Skechers U.S.A's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Skechers U.S.A's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$73.19, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Skechers U.S.A. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Skechers U.S.A going out to 2026, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 1 warning sign for Skechers U.S.A you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
