Crocs Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

Crocs (NAS: CROX) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Monday. Crocs and its subsidiaries design, develop, manufacture, market, and distribute consumer products including casual and athletic shoes and shoe charms.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Crocs, with four of six rating it a buy and the remainder rating it a hold. Analysts don't like Crocs as much as competitor Steven Madden overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $205.3 million in revenue this quarter. That would represent a rise of 14.6% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.04 per share. Estimates range from $0.03 to $0.05.

What our community says:
Most CAPS All-Stars (69.9%) are awarding Crocs an outperform rating. The majority of the Fools agree with the All-Stars, with 70.9% giving it an outperform rating. Fools feel positively about Crocs and haven't been shy with their opinions lately, logging 1,984 posts in the past 30 days. Crocs' bearish CAPS rating of one out of five stars falls short of the Fool community sentiment.

Management:
Crocs' profit has risen year-over-year by an average of 56.9% over the past five quarters.

Now let's look at how efficient management is at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. Crocs has seen increasing operating margins year-over-year for the last four quarters. Operating margins reflect the total sales revenue that the company retains after costs. Here is how Crocs has been doing for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

53.5%

57.6%

52.6%

48.9%

Operating Margin

13.5%

21.9%

12.5%

3.1%

Net Margin

11.0%

18.8%

9.5%

2.6%

One final thing: If you want to keep tabs on Crocs movements, and for more analysis on the company, make sure you add it to your watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time this article was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners