Crocs Earnings Forecast: EPS Falls Amid Modest Revenue Rise

In a recent report, Crocs is projected to report an EPS of $3.12, a 4% decline year-over-year. However, revenue estimates suggest a slight growth. Investors are advised to monitor analyst revisions, as Crocs holds a Zacks Rank of #2 (Buy).

Date: 09-10-2024

AI Rating: 5

The recent report on Crocs (CROX) highlights several important metrics that investors should be aware of. The company is anticipated to announce an Earnings Per Share (EPS) of $3.12, which represents a 4% decline compared to the same quarter last year. This decrease in EPS can raise concerns among investors regarding profitability, potentially impacting stock prices negatively in the short term.

On a positive note, revenue is expected to reach $1.05 billion, reflecting a modest increase of 0.08% from the previous year. The full-year forecast also presents a brighter picture, with total earnings expected to reach $12.88 per share, marking an increase of 7.07%, and revenue projected to be $4.13 billion, showing a growth of 4.19% compared to the prior year.

Furthermore, the report notes that Crocs currently holds a Zacks Rank of #2 (Buy), indicating a positive outlook from analysts. The 0.3% upward revision in the Zacks Consensus EPS estimate is also a good sign, suggesting a slight improvement in sentiment toward the company's near-term prospects. Valuation metrics support this positive sentiment, as Crocs trades at a Forward P/E ratio of 10.6, which is significantly lower than the industry average of 19.44, indicating that the stock might be undervalued.

However, the Textile - Apparel industry, to which Crocs belongs, is ranked 206 out of over 250 industries, falling in the bottom 19%. This ranking reflects broader challenges within the industry that could adversely influence Crocs stock price. Investors should keep an eye on any changes in analyst projections, as positive estimate revisions can correlate with stock price performance.

Stocks: CROX