Benzinga | Feb 3, 2021 10:04AM EST

Preview: Skechers USA's Earnings

Skechers USA (NYSE:SKX) unveils its next round of earnings this Thursday, February 04. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts predict Skechers USA will report earnings of $0.3 per share on revenue of $1.31 billion. Skechers USA earnings in the same period a year ago was $0.39 per share. Quarterly sales came in at $1.33 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 23.08% decrease in the company's earnings. Sales would be down 1.58% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.42 -0.50 0.39 0.39EPS Actual 0.53 -0.44 0.39 0.39Revenue Estimate 1.22 B 684.92 M 1.22 B 1.25 BRevenue Actual 1.30 B 729.47 M 1.24 B 1.33 B

Stock Performance

Shares of Skechers USA were trading at $34.74 as of February 02. Over the last 52-week period, shares are down 7.41%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Skechers USA is scheduled to hold the call at 16:30:00 ET and can be accessed here.