Skechers USA, in the Spotlight Soon

Skechers USA (NYSE: SKX  ) is expected to report Q1 earnings around April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Skechers USA's revenues will expand 23.3% and EPS will turn positive

The average estimate for revenue is $433.2 million. On the bottom line, the average EPS estimate is $0.19.

Revenue details
Last quarter, Skechers USA recorded revenue of $395.6 million. GAAP reported sales were 39% higher than the prior-year quarter's $286.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.08. GAAP EPS were $0.08 for Q4 versus -$1.18 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 43.0%, 260 basis points better than the prior-year quarter. Operating margin was 2.2%, much better than the prior-year quarter. Net margin was 1.0%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.82 billion. The average EPS estimate is $1.02.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 495 members out of 523 rating the stock outperform, and 28 members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give Skechers USA a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Skechers USA is outperform, with an average price target of $23.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Skechers. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On April 23, 2013, at 2:55 PM, tdotsports1 wrote:

    This one is intriguing. I'll be curious if the management team continues to keep costs down while growing a pretty solid brand.

  • Report this Comment On April 24, 2013, at 6:31 PM, tdotsports1 wrote:

    So they pre-released Q1 today, beating REVS and saying EPS will be 15-19 cents (excluding special items) but stock is getting hammered?

    Is this a case of shoot first ask question later?

    I see growth and turnaround story here?

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