Crocs Earnings Preview

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Crocs (NAS: CROX) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Wednesday, April 25. Crocs and its subsidiaries are engaged in the design, development, manufacturing, marketing, and distribution of consumer products, mainly casual and athletic shoes and shoe charms, from specialty resins referred to as Croslite.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Crocs, with six out of eight rating it a buy and the remainder rating it a hold. Analysts like Crocs better than competitor Wolverine World Wide overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $266.7 million in revenue this quarter. That would represent a rise of 17.7% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.26 per share. Estimates range from $0.25 to $0.27.

What our community says:
Most CAPS All-Stars (69.3%) are giving Crocs an outperform rating. The majority of the Fools agree with the All-Stars, with 70.9% giving it an outperform rating. Over the past month, Fools have logged just five posts on Crocs. The tone of their comments has generally been bullish. 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 96.7% over the past five quarters.

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

Quarter

Q4

Q3

Q2

Q1

Gross Margin

49%

53.5%

57.6%

52.6%

Operating Margin

3.1%

13.5%

21.9%

12.5%

Net Margin

2.7%

11.0%

18.8%

9.5%

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Earnings estimates provided by Zacks.

At the time this article was published

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