The 10-second takeaway
For the quarter ended June 30 (Q2), Crocs missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Gross margins improved, operating margins increased, net margins dropped.
Crocs reported revenue of $330.9 million. The 10 analysts polled by S&P Capital IQ looked for net sales of $340.2 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $295.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.68. The eight earnings estimates compiled by S&P Capital IQ forecast $0.63 per share. GAAP EPS of $0.68 for Q2 were 11% higher than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 59.3%, 170 basis points better than the prior-year quarter. Operating margin was 21.6%, 40 basis points better than the prior-year quarter. Net margin was 18.6%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $320.7 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $1.17 billion. The average EPS estimate is $1.48.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,642 members out of 2,309 rating the stock outperform, and 667 members rating it underperform. Among 446 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 286 give Crocs a green thumbs-up, and 160 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Crocs is outperform, with an average price target of $25.25.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Crocs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.