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Here's Why Crocs (CROX) is Poised to Beat on Earnings in Q3
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Crocs, Inc. (CROX - Free Report) is expected to register increases in the top and bottom lines when it reports third-quarter 2022 numbers on Nov 3, before market open.
The Zacks Consensus Estimate for third-quarter earnings per share has moved down by a penny in the past 60 days to $2.57 per share. However, the consensus estimate suggests a rise of 4.1% from the year-ago period’s reported number. The Zacks Consensus Estimate for revenues is pegged at $941.9 million, suggesting an improvement of 50.5% from the prior-year reported figure.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 21.9%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 19.1%.
Crocs has been gaining from solid consumer demand, and continued strength in the Crocs and HEYDUDE brands. The company’s acquired HEYDUDE (which specializes in casual, comfortable and lightweight products) is expected to have worked in its favor in the to-be-reported quarter.
Its expanded digital and omnichannel capabilities have been significant growth drivers. The third-quarter performance is expected to have gained from strong traffic and solid demand. Increased focus on the Crocs mobile app and global social platforms bodes well. Gains from strategic collaborations and influencer campaigns, along with digital and social marketing efforts, are expected to have been upsides.
On its last reported quarter’s earnings call, management projected third-quarter 2022 revenues to grow 46-53% to $915-$955 million. In the prior-year quarter, it reported revenues of $626 million. The company expects the Crocs brand’s revenues to be $680-$700 million, indicating year-over-year growth of 15-18% on a constant-currency basis and 9-12% on a reported basis. HEYDUDE Brand revenues are likely to be $235-$255 million.
However, Crocs has been reeling under inflation, higher air freight and logistic costs, unfavorable channel mix, and the adverse impacts of currency. These factors are likely to have dented margins in the third quarter.
On its last reported quarter’s earnings call, management estimated adjusted operating margin of 25-26%, whereas it reported 32.8% in the year-ago quarter. The view also includes air freight expenses of $15 million.
What Does the Zacks Model Unveil?
Our proven model predicts an earnings beat for Crocs this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Crocs currently sports a Zacks Rank #1 and has an Earnings ESP of +1.48%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
BJ's Wholesale (BJ - Free Report) has an Earnings ESP of +0.79% and currently sports a Zacks Rank #1. BJ is likely to register top-line growth when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.64 billion, suggesting 8.8% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal third-quarter earnings is pegged at 79 cents, suggesting a 13.2% decline from 91 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past 30 days.
Costco (COST - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3. COST is expected to register top and bottom-line growth from the year-ago quarter’s reported numbers when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $54.98 billion, suggesting growth of 9.2% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for Costco’s quarterly earnings has moved up 2.3% in the past 30 days. The consensus estimate for earnings suggests 6.1% growth from the year-ago quarter’s reported number. COST delivered an earnings beat of 7.7%, on average, in the trailing four quarters.
Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank #3. RL is anticipated to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating an improvement of 3.7% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Ralph Lauren’s earnings of $2.07 per share has moved down 1.4% in the past 30 days. The consensus estimate suggests a decline of 21% from 99 cents reported in the year-ago quarter. RL has delivered an earnings beat of 34.9%, on average, in the trailing four quarters.
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Here's Why Crocs (CROX) is Poised to Beat on Earnings in Q3
Crocs, Inc. (CROX - Free Report) is expected to register increases in the top and bottom lines when it reports third-quarter 2022 numbers on Nov 3, before market open.
The Zacks Consensus Estimate for third-quarter earnings per share has moved down by a penny in the past 60 days to $2.57 per share. However, the consensus estimate suggests a rise of 4.1% from the year-ago period’s reported number. The Zacks Consensus Estimate for revenues is pegged at $941.9 million, suggesting an improvement of 50.5% from the prior-year reported figure.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 21.9%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 19.1%.
Crocs, Inc. Price and EPS Surprise
Crocs, Inc. price-eps-surprise | Crocs, Inc. Quote
Key Factors to Note
Crocs has been gaining from solid consumer demand, and continued strength in the Crocs and HEYDUDE brands. The company’s acquired HEYDUDE (which specializes in casual, comfortable and lightweight products) is expected to have worked in its favor in the to-be-reported quarter.
Its expanded digital and omnichannel capabilities have been significant growth drivers. The third-quarter performance is expected to have gained from strong traffic and solid demand. Increased focus on the Crocs mobile app and global social platforms bodes well. Gains from strategic collaborations and influencer campaigns, along with digital and social marketing efforts, are expected to have been upsides.
On its last reported quarter’s earnings call, management projected third-quarter 2022 revenues to grow 46-53% to $915-$955 million. In the prior-year quarter, it reported revenues of $626 million. The company expects the Crocs brand’s revenues to be $680-$700 million, indicating year-over-year growth of 15-18% on a constant-currency basis and 9-12% on a reported basis. HEYDUDE Brand revenues are likely to be $235-$255 million.
However, Crocs has been reeling under inflation, higher air freight and logistic costs, unfavorable channel mix, and the adverse impacts of currency. These factors are likely to have dented margins in the third quarter.
On its last reported quarter’s earnings call, management estimated adjusted operating margin of 25-26%, whereas it reported 32.8% in the year-ago quarter. The view also includes air freight expenses of $15 million.
What Does the Zacks Model Unveil?
Our proven model predicts an earnings beat for Crocs this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Crocs currently sports a Zacks Rank #1 and has an Earnings ESP of +1.48%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
BJ's Wholesale (BJ - Free Report) has an Earnings ESP of +0.79% and currently sports a Zacks Rank #1. BJ is likely to register top-line growth when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.64 billion, suggesting 8.8% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal third-quarter earnings is pegged at 79 cents, suggesting a 13.2% decline from 91 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past 30 days.
Costco (COST - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3. COST is expected to register top and bottom-line growth from the year-ago quarter’s reported numbers when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $54.98 billion, suggesting growth of 9.2% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for Costco’s quarterly earnings has moved up 2.3% in the past 30 days. The consensus estimate for earnings suggests 6.1% growth from the year-ago quarter’s reported number. COST delivered an earnings beat of 7.7%, on average, in the trailing four quarters.
Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank #3. RL is anticipated to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating an improvement of 3.7% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Ralph Lauren’s earnings of $2.07 per share has moved down 1.4% in the past 30 days. The consensus estimate suggests a decline of 21% from 99 cents reported in the year-ago quarter. RL has delivered an earnings beat of 34.9%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.