Stock Story -
Footwear company Crocs (NASDAQ:CROX) will be announcing earnings results tomorrow morning. Here's what to look for.
Crocs beat analysts' revenue expectations by 6.1% last quarter, reporting revenues of $938.6 million, up 6.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' constant currency revenue and earnings estimates.
Is Crocs a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Crocs's revenue to grow 2.9% year on year to $1.10 billion, slowing from the 11.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.57 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Crocs has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.7% on average.
Looking at Crocs's peers in the footwear segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Deckers (NYSE:DECK) delivered year-on-year revenue growth of 22.1%, beating analysts' expectations by 2.4%, and Skechers reported revenues up 7.2%, falling short of estimates by 3.5%. Deckers traded up 6.2% following the results while Skechers was also up 1.6%.
Read the full analysis of Deckers's and Skechers's results on StockStory.
There has been positive sentiment among investors in the footwear segment, with share prices up 11.8% on average over the last month. Crocs is down 8.3% during the same time and is heading into earnings with an average analyst price target of $160.2 (compared to the current share price of $133.48).
