Why Skechers (SKX) Stock Is Soaring Today

NEW YORK (TheStreet) -- Skechers USA (SKX) stock is soaring after exceeding analysts' estimates in its first quarter.

By midmorning, shares had added 5.6% to $38.93.

The footwear designer reported net income of 61 cents a share over the three months to March, well over analysts' estimates of 33 cents a share. 

Revenue soared 21% year over year to $546.5 million. Analysts surveyed by Thomson Reuters had expected $503.1 million.

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TheStreet Ratings team rates SKECHERS U S A INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate SKECHERS U S A INC (SKX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."

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