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The Zacks Consensus Estimate for fourth-quarter earnings per share has increased by 32.2% to $2.01 in the past 30 days. The figure suggests a rise of 89.6% from earnings of $1.06 reported in the year-ago period. The consensus mark for 2021 earnings stands at $8.18 per share, indicating growth of 154% from the year-earlier quarter's reported figure.
The Zacks Consensus Estimate for revenues is pegged at $585.1 million, suggesting an improvement of 42.2% from the prior-year reported figure. The consensus mark for 2021 earnings is pegged at $2.2 billion, implying 66.8% growth from the year-ago quarter's reported figure.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 41.6%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 30%.
Crocs has been gaining from sturdy consumer demand for its brands worldwide. The company offers a wide variety of footwear products, including sandals, wedges, flips and slides, which cater to people of all ages. Crocs’ top line has been gaining on healthy demand in its key products, including Clogs, Sandals and Jibbitz. Continued demand for casual clothing and comfortable footwear is expected to have worked in its favor in the to-be-reported quarter.
The company’s focus on product innovation and marketing, digital capabilities, and tapping of growth opportunities in Asia, primarily China, is likely to get reflected in the to-be-reported quarter’s top line. The direct-to-consumer channel has been a significant growth driver for Crocs. The company’s fourth-quarter performance is expected to have gained from continued robust traffic at sites, higher pricing and fewer promotions. Gains from strategic collaborations and influencer campaigns, along with digital and social marketing efforts, are expected to have remained upsides.
Crocs’ immediate action to shift production, enhance factory throughput, leverage air freight and strategically allocate units have helped mitigate the impacts of factory closures in Vietnam and the global supply-chain issues. This is likely to have led to continued momentum in the fourth quarter.
Driven by the strength in the Crocs brand despite the ongoing supply-chain challenges, management recently raised its 2021 revenue and adjusted operating margin guidance. The company estimates year-over-year revenue growth of 67% for 2021. Earlier, Crocs projected revenue growth of 62-65%. The company expects an adjusted operating margin of 30% for 2021, reflecting an improvement from the previously mentioned of 28% and suggests a significant expansion from 18.9% reported in 2020.
For the fourth quarter of 2021, it anticipates revenue growth of 42%. The adjusted operating margin is estimated to be 28% for the fourth quarter.
While the aforementioned factors raise optimism, we cannot ignore the ongoing supply-chain issues. The supply-chain disruptions have been challenging for manufacturers and have significantly hampered the mobility of products across the globe. Port congestions, increasing material costs and a shortage of truck drivers have also been concerning. Global inflation, contributing to incremental freight costs, higher wages, primarily in distribution centers, and increased raw materials costs, is expected to have continued through the fourth quarter of 2021.
On its last reported quarter’s earnings call, management anticipated EMEA’s fourth-quarter revenues to be disproportionately impacted by the Vietnam supply-chain challenges. It also expected non-GAAP adjustments of $8-$10 million associated with distribution center investments to hit the gross margin.
Elevated marketing costs, along with higher service and facilities costs, have been resulting in higher SG&A costs. Higher salaries and wages, and recruiting costs, as a result of increased headcount and higher variable executive compensation, have been contributing to the increase.
What Does the Zacks Model Unveil?
Our proven model does not conclusively predict a beat for Crocs this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Crocs sports a Zacks Rank #1 and has an Earnings ESP of 0.00%.
3 Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Gildan Activewear (GIL - Free Report) currently has an Earnings ESP of +9.57% and a Zacks Rank of 2. The company is likely to register an increase in the top line when it reports fourth-quarter 2021 numbers. The consensus mark for GIL’s quarterly earnings has moved up 3.6% in the past 30 days to 58 cents per share. The consensus estimate suggests 28.9% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gildan’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, which suggests a rise of 5.9% from the figure reported in the prior-year quarter.
Carter's (CRI - Free Report) currently has an Earnings ESP of +1.48% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter 2021 results. The consensus mark for CRI’s quarterly revenues is pegged at $1.02 billion, which suggests a rise of 3.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Carter’s has moved down 1% to $2.03 per share in the past 30 days. The consensus estimate indicates a 17.5% decline from the year-ago quarter.
BJ's Wholesale Club (BJ - Free Report) currently has an Earnings ESP of +6.58% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2021 earnings. The consensus mark for BJ’s quarterly revenues is pegged at $4.41 billion, suggesting 11.7% growth from the figure reported in the prior-year quarter.
The consensus mark for quarterly earnings has moved down by a penny in the past 30 days to 74 cents per share. However, the consensus estimate for BJ’s suggests an increase 5.7% from the year-ago quarter.
Image: Bigstock
Here's How Crocs (CROX) is Placed Just Ahead of Q4 Earnings
Crocs, Inc. (CROX - Free Report) is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 numbers on Feb 16, before market open.
The Zacks Consensus Estimate for fourth-quarter earnings per share has increased by 32.2% to $2.01 in the past 30 days. The figure suggests a rise of 89.6% from earnings of $1.06 reported in the year-ago period. The consensus mark for 2021 earnings stands at $8.18 per share, indicating growth of 154% from the year-earlier quarter's reported figure.
The Zacks Consensus Estimate for revenues is pegged at $585.1 million, suggesting an improvement of 42.2% from the prior-year reported figure. The consensus mark for 2021 earnings is pegged at $2.2 billion, implying 66.8% growth from the year-ago quarter's reported figure.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 41.6%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 30%.
Crocs, Inc. Price and EPS Surprise
Crocs, Inc. price-eps-surprise | Crocs, Inc. Quote
Key Factors to Note
Crocs has been gaining from sturdy consumer demand for its brands worldwide. The company offers a wide variety of footwear products, including sandals, wedges, flips and slides, which cater to people of all ages. Crocs’ top line has been gaining on healthy demand in its key products, including Clogs, Sandals and Jibbitz. Continued demand for casual clothing and comfortable footwear is expected to have worked in its favor in the to-be-reported quarter.
The company’s focus on product innovation and marketing, digital capabilities, and tapping of growth opportunities in Asia, primarily China, is likely to get reflected in the to-be-reported quarter’s top line. The direct-to-consumer channel has been a significant growth driver for Crocs. The company’s fourth-quarter performance is expected to have gained from continued robust traffic at sites, higher pricing and fewer promotions. Gains from strategic collaborations and influencer campaigns, along with digital and social marketing efforts, are expected to have remained upsides.
Crocs’ immediate action to shift production, enhance factory throughput, leverage air freight and strategically allocate units have helped mitigate the impacts of factory closures in Vietnam and the global supply-chain issues. This is likely to have led to continued momentum in the fourth quarter.
Driven by the strength in the Crocs brand despite the ongoing supply-chain challenges, management recently raised its 2021 revenue and adjusted operating margin guidance. The company estimates year-over-year revenue growth of 67% for 2021. Earlier, Crocs projected revenue growth of 62-65%. The company expects an adjusted operating margin of 30% for 2021, reflecting an improvement from the previously mentioned of 28% and suggests a significant expansion from 18.9% reported in 2020.
For the fourth quarter of 2021, it anticipates revenue growth of 42%. The adjusted operating margin is estimated to be 28% for the fourth quarter.
While the aforementioned factors raise optimism, we cannot ignore the ongoing supply-chain issues. The supply-chain disruptions have been challenging for manufacturers and have significantly hampered the mobility of products across the globe. Port congestions, increasing material costs and a shortage of truck drivers have also been concerning. Global inflation, contributing to incremental freight costs, higher wages, primarily in distribution centers, and increased raw materials costs, is expected to have continued through the fourth quarter of 2021.
On its last reported quarter’s earnings call, management anticipated EMEA’s fourth-quarter revenues to be disproportionately impacted by the Vietnam supply-chain challenges. It also expected non-GAAP adjustments of $8-$10 million associated with distribution center investments to hit the gross margin.
Elevated marketing costs, along with higher service and facilities costs, have been resulting in higher SG&A costs. Higher salaries and wages, and recruiting costs, as a result of increased headcount and higher variable executive compensation, have been contributing to the increase.
What Does the Zacks Model Unveil?
Our proven model does not conclusively predict a beat for Crocs this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Crocs sports a Zacks Rank #1 and has an Earnings ESP of 0.00%.
3 Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Gildan Activewear (GIL - Free Report) currently has an Earnings ESP of +9.57% and a Zacks Rank of 2. The company is likely to register an increase in the top line when it reports fourth-quarter 2021 numbers. The consensus mark for GIL’s quarterly earnings has moved up 3.6% in the past 30 days to 58 cents per share. The consensus estimate suggests 28.9% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gildan’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, which suggests a rise of 5.9% from the figure reported in the prior-year quarter.
Carter's (CRI - Free Report) currently has an Earnings ESP of +1.48% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter 2021 results. The consensus mark for CRI’s quarterly revenues is pegged at $1.02 billion, which suggests a rise of 3.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Carter’s has moved down 1% to $2.03 per share in the past 30 days. The consensus estimate indicates a 17.5% decline from the year-ago quarter.
BJ's Wholesale Club (BJ - Free Report) currently has an Earnings ESP of +6.58% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2021 earnings. The consensus mark for BJ’s quarterly revenues is pegged at $4.41 billion, suggesting 11.7% growth from the figure reported in the prior-year quarter.
The consensus mark for quarterly earnings has moved down by a penny in the past 30 days to 74 cents per share. However, the consensus estimate for BJ’s suggests an increase 5.7% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.