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Crocs (CROX) Surges 15.3%: Is This an Indication of Further Gains?
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Crocs (CROX - Free Report) shares soared 15.3% in the last trading session to close at $97.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.3% gain over the past four weeks.
The Crocs stock moved higher on strong first-quarter 2021 sales and earnings report. Solid performance in all regions along with healthy demand in its key products, including Clogs, Sandals and Jibbitz, drove the top line. It also witnessed strong growth across all channels. Wholesale and retail revenues improved 50.1% and 93.3% year over year, respectively. E-commerce sales grew 75.3% year over year, marking the 16th successive quarter of double-digit growth. Also, favorable product mix and supply chain efficiencies along with fewer promotional activities and discounts aided gross margin.
The company’s top and bottom lines witnessed significant growth on a year over year basis, while it also beat the Zacks Consensus Estimate. Earnings of $1.49 per share beat the Zacks Consensus Estimate of $0.88 and marked a substantial growth from 22 cents earned in the prior-year quarter. Total revenues of $460.1 million surpassed the Zacks Consensus Estimate of $415 million and increased 63.6% year over year.
Management lifted its 2021 view and also issued guidance for second quarter of 2021. It now expects revenue growth of 40%-50% for 2021, with adjusted operating margin anticipated to be 22-24%. For second-quarter 2021, revenues expected to grow 60-70%, with adjusted operating margin projected to be 21-23%.
Price and Consensus
This footwear company is expected to post quarterly earnings of $1.12 per share in its upcoming report, which represents a year-over-year change of +10.9%. Revenues are expected to be $465.48 million, up 40.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Crocs, the consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CROX going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
Crocs (CROX) Surges 15.3%: Is This an Indication of Further Gains?
Crocs (CROX - Free Report) shares soared 15.3% in the last trading session to close at $97.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.3% gain over the past four weeks.
The Crocs stock moved higher on strong first-quarter 2021 sales and earnings report. Solid performance in all regions along with healthy demand in its key products, including Clogs, Sandals and Jibbitz, drove the top line. It also witnessed strong growth across all channels. Wholesale and retail revenues improved 50.1% and 93.3% year over year, respectively. E-commerce sales grew 75.3% year over year, marking the 16th successive quarter of double-digit growth. Also, favorable product mix and supply chain efficiencies along with fewer promotional activities and discounts aided gross margin.
The company’s top and bottom lines witnessed significant growth on a year over year basis, while it also beat the Zacks Consensus Estimate. Earnings of $1.49 per share beat the Zacks Consensus Estimate of $0.88 and marked a substantial growth from 22 cents earned in the prior-year quarter. Total revenues of $460.1 million surpassed the Zacks Consensus Estimate of $415 million and increased 63.6% year over year.
Management lifted its 2021 view and also issued guidance for second quarter of 2021. It now expects revenue growth of 40%-50% for 2021, with adjusted operating margin anticipated to be 22-24%. For second-quarter 2021, revenues expected to grow 60-70%, with adjusted operating margin projected to be 21-23%.
Price and Consensus
This footwear company is expected to post quarterly earnings of $1.12 per share in its upcoming report, which represents a year-over-year change of +10.9%. Revenues are expected to be $465.48 million, up 40.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Crocs, the consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CROX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>