The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Crocs beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share dropped. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Crocs reported revenue of $225.0 million. The 11 analysts polled by S&P Capital IQ expected a top line of $220.3 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $203.7 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 $0.04. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.00 per share. Non-GAAP EPS of $0.04 for Q4 were 33% lower than the prior-year quarter's $0.06 per share. GAAP EPS were -$0.04 for Q4 versus $0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.3%, 170 basis points worse than the prior-year quarter. Operating margin was -1.9%, 430 basis points worse than the prior-year quarter. Net margin was -1.6%, 430 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $310.0 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $1.26 billion. The average EPS estimate is $1.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,688 members out of 2,358 rating the stock outperform, and 670 members rating it underperform. Among 482 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 326 give Crocs a green thumbs-up, and 156 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 $19.00.
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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.