Footwear company Crocs (NASDAQ:CROX) will be announcing earnings results tomorrow before the bell. Here’s what to expect.
Crocs met analysts’ revenue expectations last quarter, reporting revenues of $1.11 billion, up 3.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ constant currency revenue estimates but underwhelming earnings guidance for the next quarter.
Is Crocs a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Crocs’s revenue to be flat year on year at $1.05 billion, slowing from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.11 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 10 analysts). Crocs has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.4% on average.
Looking at Crocs’s peers in the footwear segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Deckers reported revenues up 20.1%, topping estimates by 9%. Nike traded down 6.8% following the results while Deckers was up 10.6%.
Read our full analysis of Nike’s results here and Deckers’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the footwear stocks have fared somewhat better, they have not been spared, with share prices down 2% on average over the last month. Crocs is down 7.6% during the same time and is heading into earnings with an average analyst price target of $162.37 (compared to the current share price of $133.75).
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