Skechers (SKX) Stock Up Ahead of Q2 Earnings

Skechers (SKX) stock is rising in afternoon trading on Wednesday, as the company expects to report 2016 second quarter results after markets close on Thursday.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of Skechers (SKX) - Get Report are higher by 1.41% to $32.38 on Wednesday afternoon, as the company expects to post 2016 second quarter results after the closing bell tomorrow. 

Analysts surveyed by Thomson Reuters expect the Manhattan Beach, CA-based footwear retailer to report 52 cents per share on revenue of $888.9 million for the quarter.

In 2015, Skechers posted earnings of $1.55 per share on revenue of $800.5 million for the second quarter. 

Additionally, Adidas (AG) filed a lawsuit against Skechers last week alleging the company stole its "Springblade" concept for a similar "Mega Flex" shoe, Reuters reports. Adidas developed a Springblade design three years ago that places blades in a shoe's midsole meant to help propel runners forward.

The most recent complaint is the second lawsuit Adidas has filed against Skechers arguing the company copied its shoe designs.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate SKECHERS U S A INC as a Buy with a ratings score of B. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: SKX

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