Bharat Bhise On How Skechers Meets Its Estimates

Bharat Bhise, along with the rest of the market analysts, notes that chunk-sneaker maker Skechers USA (NYSE: SKX) has been meeting the estimates for its shares. It’s come to the point that it’s time for the analysts to adjust their expectations and lift the targets around it. After the popular shoe retailer managed to clear its goals for profits in the fourth quarter of last year, shares have jumped in response.

Skechers Making a Mark

The company is based in Manhattan Beach, California, and has managed to rake in $59.5 million, approximating to 39 cents per share, in the previous quarter. That would be a 26% growth from the quarter earlier. The expected earnings per share, says Bharat Bhise, had been 39 cents as well, with a $1.2 billion revenue for the latest quarter.

Now Skechers is breaking expectations with 40 cents per share, posting record sales throughout 2019.

What’s Next?

According to analysts, the answer isn’t quite as easy as it initially appears. The beginning of 2020 had been a little difficult for the company after all that success—shares and revenue had gone down roughly 11%. However, there is a promise: posted expected revenues are $0.77 on $1.41 billion for the quarter and $2.51 on $5.64 billion for the coming fiscal year. Skechers is showing signs that it may be able to meet these expectations.

For Bharat Bhise, it’s enough to get investors interested, as the analysts at the Susquehanna Financial Group has rated the stock positively. The target has shifted from $51 to meet these expectations. Deutsche Bank has also considered the stock a “buy,” and they have raised their share-price target to the same amount as well.

Bharat Bhise feels that this may be only the beginning of an upswing for Skechers. If they can maintain their gain and momentum, it could turn out to be another good year.