Skechers U.S.A., Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Skechers U.S.A., Inc. (NYSE:SKX) defied analyst predictions to release its quarterly results, which were ahead of market expectations. 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. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Skechers U.S.A

Taking into account the latest results, the current consensus from Skechers U.S.A's 13 analysts is for revenues of US$8.85b in 2024. This would reflect a satisfactory 7.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 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. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. 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. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Skechers U.S.A's past performance and to peers in the same industry. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Skechers U.S.A going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Skechers U.S.A that you need to be mindful of.

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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.