The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Skechers USA beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded. The profit was a surprise, as analysts had predicted a loss.
Margins expanded across the board.
Skechers USA booked revenue of $395.6 million. The five analysts polled by S&P Capital IQ expected a top line of $338.7 million on the same basis. 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 came in at $0.08. The six earnings estimates compiled by S&P Capital IQ predicted -$0.13 per share. GAAP EPS were $0.08 for Q4 against -$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.
For the quarter, gross margin was 43.0%, 260 basis points better than the prior-year quarter. Operating margin was 2.0%, 2,130 basis points better than the prior-year quarter. Net margin was 1.0%, 2,110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $427.3 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $1.76 billion. The average EPS estimate is $0.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 496 members out of 523 rating the stock outperform, and 27 members rating it underperform. Among 158 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 150 give Skechers USA a green thumbs-up, and eight 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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