The 10-second takeaway
For the quarter ended Sep. 30 (Q3), 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 grew significantly.
Margins grew across the board.
Crocs logged revenue of $295.6 million. The 10 analysts polled by S&P Capital IQ expected to see sales of $302.4 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $274.9 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 $0.49. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.43 per share. GAAP EPS of $0.49 for Q3 were 48% higher than the prior-year quarter's $0.33 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 54.4%, 90 basis points better than the prior-year quarter. Operating margin was 13.5%, 60 basis points better than the prior-year quarter. Net margin was 15.3%, 430 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $233.7 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $1.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,652 members out of 2,317 rating the stock outperform, and 665 members rating it underperform. Among 464 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 311 give Crocs a green thumbs-up, and 153 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 $23.71.
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