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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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. The Motley Fool owns 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.