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Skechers Q1 Earnings: What's in the Cards for SKX Stock?

Skechers USA Inc. SKX, the designer, developer and marketer of footwear, is slated to report first-quarter 2016 results on Apr 21. The big question facing investors is, whether the company will be able to deliver a positive earnings surprise in the quarter to be reported. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 18.5%. Let’s see how things are shaping up for this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that Skechers is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Skechers has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 52 cents. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.

Factors Influencing this Quarter

We believe that with added emphasis on the new line of products, store openings, cost containment efforts, inventory management, global distribution platform and strong backlogs, Skechers remains well positioned to sustain its growth momentum. The company’s multi-brand strategy enables it to roll out new products without cannibalizing its existing brands and helps expand the targeted demographic profile of customers. However, the competitive retail landscape and foreign currency headwinds may weigh upon Skechers’ performance in the quarter to be reported.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

McDonald's Corp. MCD has an Earnings ESP of +1.74% and a Zacks Rank #2 (Buy).

Lithia Motors Inc. LAD has an Earnings ESP of +0.65% and a Zacks Rank #2.

Cabela's Incorporated CAB has an Earnings ESP of +10.81% and a Zacks Rank #3.

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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
 
LITHIA MOTORS (LAD): Free Stock Analysis Report
 
MCDONALDS CORP (MCD): Free Stock Analysis Report
 
CABELAS INC (CAB): Free Stock Analysis Report
 
SKECHERS USA-A (SKX): Free Stock Analysis Report
 
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