Please ensure Javascript is enabled for purposes of website accessibility

Why Crocs Stock Jumped Wednesday

By Daniel Sparks - Oct 30, 2019 at 1:16PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The footwear company easily beat third-quarter expectations.

What happened

Shares of footwear company Crocs (CROX -0.39%) jumped on Wednesday, rising as much as 15.3%. But as of 12:33 p.m. EDT, the stock was up 13.1%.

The stock's gain follows the company's third-quarter update, which included better-than-expected top- and bottom-line results and an improved outlook from management for the company's full-year performance.

A chart showing a stock price moving higher.

Image source: Getty Images.

So what

Crocs reported a 19.8% year-over-year increase in revenue to $312.8 million. On average, analysts expected the retailer to report revenue of $302.1 million. The company's non-GAAP (adjusted) earnings per share were $0.57, up from $0.19 in the year-ago quarter and ahead of analysts' average forecast for $0.40.

"Our Americas business delivered exceptional growth, driven in part by another highly successful back to school season," said Crocs CEO Andrew Rees in the company's third-quarter earnings release.

Now what

Based on this strong performance and the company's progress so far in the current quarter, Crocs is raising its full-year revenue outlook. The company says it now expects 2019 revenue to increase 11% to 12% year over year. This is up from previous guidance for 9% to 11% growth.

The company's full-year outlook includes negative impacts of $28 million from currency changes and $20 million from store closures.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Crocs, Inc. Stock Quote
Crocs, Inc.
CROX
$76.45 (-0.39%) $0.30

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
394%
 
S&P 500 Returns
127%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.