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What: Shares of shoemaker Crocs
So what: Revenue reached $271.8 million, just barely topping estimates. Earnings per share were $0.32 on a non-GAAP basis, $0.06 higher than estimates. So why did the stock drop? The company outlook for the second quarter was for $335 million to $340 million in revenue and $0.61 to $0.63 per share in earnings. Analysts had expected $352.7 million in revenue and $0.65 in earnings per share next quarter.
Now what: Revenue did increase 20% and net income jumped 32%, so the sell-off today is overdone in my eyes. The company is now trading with a trailing P/E ratio of 16, a great value considering the growth rate. I have my reservations about Crocs long-term, but I don't see this earnings report as a reason to sell shares.
Interested in more info on Crocs? Add it to your Watchlist.
Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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