Footwear company Crocs (NASDAQ:CROX) will be announcing earnings results tomorrow before market hours. Here’s what investors should know.
Crocs beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $989.8 million, up 3.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ EPS estimates.
Is Crocs a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Crocs’s revenue to decline 3.1% year on year to $909.1 million, a reversal from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.49 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Crocs has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Crocs’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Skechers delivered year-on-year revenue growth of 7.1%, missing analysts’ expectations by 0.9%, and Hasbro reported revenues up 17.1%, topping estimates by 14.8%. Skechers traded down 5.3% following the results while Hasbro was up 15.9%.
Read our full analysis of Skechers’s results here and Hasbro’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.7% on average over the last month. Crocs is up 12% during the same time and is heading into earnings with an average analyst price target of $121.55 (compared to the current share price of $100).
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