The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Skechers USA met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins grew across the board.
Skechers USA reported revenue of $429.4 million. The five analysts polled by S&P Capital IQ predicted sales of $427.7 million on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $413.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.22. The five earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS of $0.22 for Q3 were 29% higher than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.7%, 100 basis points better than the prior-year quarter. Operating margin was 4.7%, 410 basis points better than the prior-year quarter. Net margin was 2.6%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $325.0 million. On the bottom line, the average EPS estimate is -$0.14.
Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is $0.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 509 members out of 538 rating the stock outperform, and 29 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Skechers USA a green thumbs-up, and seven 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 $21.75.
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