PayPal, Skechers Stocks Soar to Fresh Highs After Earnings

Gladys Abbott
October 21, 2017

Skechers U.S.A. (SKX)'s Williams Percent Range or 14 day Williams %R now sits at -2.88. SKX made a sharp come back in the third quarter with the bottom line outperforming the Zacks Consensus Estimate by 37.2%.

PayPal stock is up 5.2% to trade at $70.75 and hit a record high of $71.66 earlier, after the company reported better-than-expected third-quarter earnings and raised its full-year guidance thanks to a sharp growth in mobile payments.

As of the end of the quarter Seven Eight Capital, LLC had acquired a total of 123,800 shares growing its holdings by 3,466.8%.

Skechers U.S.A., Inc. designs and markets branded contemporary casual, active, rugged and lifestyle footwear for men, women and children. Cantab Capital Prns Llp invested in 14,938 shares or 0% of the stock. The overall gains were led by a 25.7 percent gain in worldwide wholesale revenues and a 25.7 percent increase in company-owned global retail stores. Its Performance Brands include Skechers Performance, Skechers Kids and Skechers Work. Earnings from operations were 116.5 million dollars or 10.6 percent of net sales, which was an increase of 13.1 million dollars or 12.7 percent over the third quarter of 2016. The company now operates e-commerce sites in Chile, Germany and United Kingdom, and has launched additional sites in Spain and Canada. Texas Permanent School Fund reported 97,679 shares stake. Return on Assets (ROA) value of the stock is 9.4 Percent.

Management now projects fourth-quarter 2017 net sales in the band of $860-$885 million compared with $764.3 million reported in the prior-year quarter.

Research analysts study publicly traded companies and make recommendations on the securities of those companies. Nelson Van Denburg And Campbell Wealth Mgmt Gp Ltd Limited Liability Company has 30 shares. The current Zacks Consensus Estimate for the quarter stands at 12 cents.

Relative Strength Index (RSI) for Skechers U.S.A., Inc.

The domestic wholesale revenues rose 1.4% year over year. Over the trailing year, the stock is underperforming the S&P 500 by 19.62, and it's gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. Conversely, a beta below 1 implies below average systematic risk. "The strong worldwide growth, including the continued strength in China, the resurgence of the United Kingdom and growth across all of Europe combined with our strong global retail business, resulted in worldwide wholesale and retail representing 53 percent of our total sales in the third quarter".

The big thing about the quarter was that profit growth matched revenue growth.

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"Our worldwide business remains the biggest growth opportunity, and we believe it will continue to represent approximately half or more of our total business", said Weinberg.

The company said the better-than-expected earnings was boosted by strong sales growth in its worldwide retail business. Including its retail business, domestic sales grew 4 or 5 percent in the quarter. Domestic comps were also promising, increasing 3.1% in a hard retail environment and as the company dealt with damage from hurricanes Harvey, Irma, and Maria.

Successfully tackling the equity markets may involve owning a wide range of stocks. During the quarter, the company opened 13 stores and shuttered four outlets.

At the end of the quarter, Skechers also operated 805 branded stores internationally, owned and operated by JVs, franchisees and distributors. Look at its top three institutional owners. After this sale, 183,283 common shares of SKX are directly owned by the insider, with total stake valued at $4,404,290.

Capital expenditures incurred during the quarter were $25.7 million on store openings, remodels along with corporate office and showroom upgrades. The company operates in the Consumer Cyclical sector with a market capitalization of 3.81 Million. Wells Fargo maintained the shares of SKX in report on Friday, October 20 with "Market Perform" rating. A reading between 0 and -20 would indicate an overbought situation. GIII flaunting a Zacks Rank #1 (Strong Buy), and The Gap, Inc. (NYSE:SKX) are the two most active stocks in the Textile - Apparel Footwear & Accessories industry based on today's trading volumes.

For the quarter ended September 30, net earnings increased 41.8% to $92.3 million.

A high growth rate isn't necessarily valuable to investors.

This strong earnings growth momentum will continue into 2018. The company's revenue was up 16.2% compared to the same quarter a year ago. It's a once-in-a-generation opportunity to invest in pure genius. The stock is trading $25.97 its 50-day moving average by 1.94%.

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