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Can Crocs (CROX) Beat on Q1 Earnings Despite Cost Headwinds?
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Crocs, Inc. (CROX - Free Report) is scheduled to release first-quarter 2024 results on May 7, before market open. This leading branded footwear company is expected to have witnessed year-over-year declines in revenues and earnings in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $882.6 million, suggesting a decline of 0.2% from the prior-year reported figure.
The consensus estimate for first-quarter earnings per share has moved down by a penny in the past seven days to $2.22. The consensus estimate suggests a decline of 14.9% from the year-ago period’s reported number.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 14.2%, on average. In the last reported quarter, its bottom line surpassed the Zacks Consensus Estimate by 8.4%.
Crocs’ first-quarter 2024 sales are likely to have benefited from the solid consumer demand across the Crocs and HEYDUDE brands, backed by effective pricing actions. It has been seeing strength in clogs, sandals and personalization for a while.
The company’s Jibbitz business has also been doing well for quite some time now. Management continues to view personalization as a mega-consumer trend, with the opportunity to expand the Jibbitz penetration in 2024 via better wholesale execution, deeper international penetration and advanced speed-to-market capabilities.
On the last reported quarter’s earnings call, the company expected revenues between down 1.5% and up 0.5% year over year for first-quarter 2024. Crocs brand’s revenues are likely to grow 6-8% year over year, while HEYDUDE brand’s revenues are anticipated to plunge 20-23%. Adjusted earnings are forecast to be $2.15-$2.25 per share, with the adjusted operating margin likely to be 22%.
Additionally, Crocs has been witnessing a decline in inbound freight costs, which has been contributing to gross margins for quite some time now. Also, favorable ocean freight rates, the absence of air freight and lower promotional activity in the Crocs brand have been acting as tailwinds. The company is likely to have witnessed an improved gross margin in the to-be-reported quarter due to gains from lower freight costs across both brands.
However, Crocs has been facing challenges related to the current economic environment and rising costs related to the HEYDUDE acquisition. Also, distribution and logistics inefficiencies have been acting as headwinds. The company has been concerned about continued inflation, higher interest rates and geopolitical tensions across the globe. These factors are likely to have hurt its bottom-line performance in the to-be-reported quarter.
What Does the Zacks Model Unveil?
Our proven model does not conclusively predict an earnings beat for Crocs this 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 is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Crocs currently has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
Central Garden & Pet (CENT - Free Report) currently has an Earnings ESP of +4.32% and a Zacks Rank of 2. CENT is likely to have registered bottom-line growth in its second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $894.5 million, suggesting a 1.6% decline from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CENT’s fiscal second-quarter earnings is pegged at 83 cents per share, up 15.3% from the year-ago quarter. The consensus mark for earnings has risen 2.5% in the past 30 days.
Disney (DIS - Free Report) currently has an Earnings ESP of +1.09% and a Zacks Rank of 2. DIS is likely to have registered top and bottom-line growth in its second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $22.1 billion, suggesting 1.3% growth from the figure reported in the year-ago quarter.
The consensus estimate for DIS’ fiscal second-quarter earnings is pegged at $1.09 per share, suggesting a 17.2% increase from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days.
Planet Fitness (PLNT - Free Report) currently has an Earnings ESP of +3.51% and a Zacks Rank of 3. PLNT is likely to have registered top and bottom-line growth in its first-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $249.5 million, suggesting 12.3% growth from the figure reported in the year-ago quarter.
The consensus estimate for Planet Fitness’ first-quarter earnings is pegged at 49 cents per share, suggesting 19.5% growth from the year-ago quarter. The consensus mark has moved down by a penny in the past seven days.
Image: Bigstock
Can Crocs (CROX) Beat on Q1 Earnings Despite Cost Headwinds?
Crocs, Inc. (CROX - Free Report) is scheduled to release first-quarter 2024 results on May 7, before market open. This leading branded footwear company is expected to have witnessed year-over-year declines in revenues and earnings in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $882.6 million, suggesting a decline of 0.2% from the prior-year reported figure.
The consensus estimate for first-quarter earnings per share has moved down by a penny in the past seven days to $2.22. The consensus estimate suggests a decline of 14.9% from the year-ago period’s reported number.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 14.2%, on average. In the last reported quarter, its bottom line surpassed the Zacks Consensus Estimate by 8.4%.
Crocs, Inc. Price and EPS Surprise
Crocs, Inc. price-eps-surprise | Crocs, Inc. Quote
Key Factors to Note
Crocs’ first-quarter 2024 sales are likely to have benefited from the solid consumer demand across the Crocs and HEYDUDE brands, backed by effective pricing actions. It has been seeing strength in clogs, sandals and personalization for a while.
The company’s Jibbitz business has also been doing well for quite some time now. Management continues to view personalization as a mega-consumer trend, with the opportunity to expand the Jibbitz penetration in 2024 via better wholesale execution, deeper international penetration and advanced speed-to-market capabilities.
On the last reported quarter’s earnings call, the company expected revenues between down 1.5% and up 0.5% year over year for first-quarter 2024. Crocs brand’s revenues are likely to grow 6-8% year over year, while HEYDUDE brand’s revenues are anticipated to plunge 20-23%. Adjusted earnings are forecast to be $2.15-$2.25 per share, with the adjusted operating margin likely to be 22%.
Additionally, Crocs has been witnessing a decline in inbound freight costs, which has been contributing to gross margins for quite some time now. Also, favorable ocean freight rates, the absence of air freight and lower promotional activity in the Crocs brand have been acting as tailwinds. The company is likely to have witnessed an improved gross margin in the to-be-reported quarter due to gains from lower freight costs across both brands.
However, Crocs has been facing challenges related to the current economic environment and rising costs related to the HEYDUDE acquisition. Also, distribution and logistics inefficiencies have been acting as headwinds. The company has been concerned about continued inflation, higher interest rates and geopolitical tensions across the globe. These factors are likely to have hurt its bottom-line performance in the to-be-reported quarter.
What Does the Zacks Model Unveil?
Our proven model does not conclusively predict an earnings beat for Crocs this 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 is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Crocs currently has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
Central Garden & Pet (CENT - Free Report) currently has an Earnings ESP of +4.32% and a Zacks Rank of 2. CENT is likely to have registered bottom-line growth in its second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $894.5 million, suggesting a 1.6% decline from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CENT’s fiscal second-quarter earnings is pegged at 83 cents per share, up 15.3% from the year-ago quarter. The consensus mark for earnings has risen 2.5% in the past 30 days.
Disney (DIS - Free Report) currently has an Earnings ESP of +1.09% and a Zacks Rank of 2. DIS is likely to have registered top and bottom-line growth in its second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $22.1 billion, suggesting 1.3% growth from the figure reported in the year-ago quarter.
The consensus estimate for DIS’ fiscal second-quarter earnings is pegged at $1.09 per share, suggesting a 17.2% increase from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days.
Planet Fitness (PLNT - Free Report) currently has an Earnings ESP of +3.51% and a Zacks Rank of 3. PLNT is likely to have registered top and bottom-line growth in its first-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $249.5 million, suggesting 12.3% growth from the figure reported in the year-ago quarter.
The consensus estimate for Planet Fitness’ first-quarter earnings is pegged at 49 cents per share, suggesting 19.5% growth from the year-ago quarter. The consensus mark has moved down by a penny in the past seven days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.