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Crocs, Inc. (CROX - Free Report) is more than just those colorful clogs that were a craze a few years ago. The shoe retailer recently surprised on the Zacks Consensus by 19%. But disappointing guidance sent shares tumbling, creating value. This Zacks #1 Rank (Strong Buy) has a forward P/E of 12.

Crocs makes casual footwear for men, women and children in over 250 styles. It utilizes its proprietary closed-cell resin, Croslite, in every shoe it makes. The material allows for soft, comfortable, lightweight, odor-resistant shoes.

You can find Crocs on its web site, in department stores and in 439 stand-alone retail stores in 90 countries.

Another Beat In Q1

On Apr 25, Crocs reported first quarter results and surprised on the Zacks Consensus Estimate by 5 cents. Earnings per share were 31 cents compared to the consensus of 26 cents. It kept alive Crocs' impressive earnings surprise streak which has now stretched to 11 quarters.

Revenue jumped 19.9% to $271.8 million from $226.7 million a year ago. It was driven by a 40.5% rise in Asia and 15.9% in the Americas which offset a slowing Europe that saw sales decline 2.7%.

Global same store sales climbed 10.2% on a currency neutral basis.

Both wholesale and retail sales saw gains, with wholesale sales rising 15.9% to $190.7 million and retail jumping 33.2% to $60.6 million. Wholesale is its largest segment followed by retail and then Internet sales, which rose 23.3% to $20.5 million.

Inventories rose 9.9% to $169.1 million from $153.8 million a year ago.

Crocs' cash and cash equivalents also soared 78.9% to $206.6 million from $115.5 million in the year ago quarter.

Q2 Guidance

Crocs only provided second quarter guidance. Earnings are expected between 61 and 63 cents per share with revenue between $335 and $340 million.

This was a disappointment to investors as the Zacks Consensus for the quarter was already at 64 cents. 3 estimates have since been revised lower for the quarter.

2012 Zacks Consensus Estimate Rises

Despite the disappointment in second quarter guidance, analysts are still bullish on the full year.

5 out of 8 estimates have been revised higher for 2012. That has pushed the Zacks Consensus up to $1.46 from $1.41 per share.

That is earnings growth of 17.5% as the company made only $1.24 in 2011.

Shares Fell After The Earnings Report

Investors punished Crocs after its first quarter earnings report which pushed shares down.

The sell off has pushed Crocs into value territory, but just barely.

In addition to a P/E that is below that of the S&P 500, it also has a price-to-book ratio of 3.0. I use a P/B ratio of 3.0 as a cut-off for value stocks so it just slides in under the line on that metric.

Crocs also has other solid metrics including a 1-year return on equity (ROE) of 24.2%. That is well above its peers at 16%.

If you're looking for a retailer with value and earnings growth, Crocs fits the bill.

Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at @TraceyRyniec.

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