Footwear company Crocs (NASDAQ: CROX) will be reporting earnings this Thursday before market hours. Here’s what to look for.
Crocs beat analysts’ revenue expectations last quarter, reporting revenues of $957.6 million, down 3.2% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance exceeding analysts’ expectations.
Is Crocs a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Crocs’s revenue to decline 3.7% year on year, a deceleration from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Crocs rarely misses Wall Street’s revenue estimates.
Looking at Crocs’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Nike posted flat year-on-year revenue, meeting analysts’ expectations, and Monarch reported revenues up 8.9%, topping estimates by 5.2%. Nike traded down 15.5% following the results while Monarch was up 15.9%.
Read our full analysis of Nike’s results here and Monarch’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.5% on average over the last month. Crocs is up 28.1% during the same time and is heading into earnings with an average analyst price target of $109.67 (compared to the current share price of $102.50).
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