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Does The Street Have Crocs Figured Out?

By Seth Jayson - Updated Apr 10, 2017 at 1:48PM

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Checking expectations

Crocs (Nasdaq: CROX) is expected to report Q1 earnings around April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Crocs's revenues will expand 12.4% and EPS will grow 6.3%.

The average estimate for revenue is $305.5 million. On the bottom line, the average EPS estimate is $0.34.

Revenue details
Last quarter, Crocs reported revenue of $225.0 million. 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 details
Last quarter, non-GAAP EPS came in at $0.04. GAAP EPS were -$0.04 for Q4 against $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.

Recent performance
For the preceding quarter, gross margin was 47.3%, 170 basis points worse than the prior-year quarter. Operating margin was -1.9%, 420 basis points worse than the prior-year quarter. Net margin was -1.6%, 430 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.25 billion. The average EPS estimate is $1.49.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,683 members out of 2,351 rating the stock outperform, and 668 members rating it underperform. Among 457 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 303 give Crocs a green thumbs-up, and 154 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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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Crocs, Inc. Stock Quote
Crocs, Inc.
CROX
$162.38 (-2.27%) $-3.77

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