## Crocs Earnings Preview: What to Expect on October 29th
The footwear giant, Crocs (CROX), is gearing up to release its quarterly earnings on Tuesday, October 29th, and investors are eagerly awaiting the news. Analysts are predicting an earnings per share (EPS) of $3.10, but the real focus will be on whether the company can surpass these estimates and deliver positive guidance for the next quarter. After all, for new investors, it’s crucial to remember that stock prices are often driven by future projections, not just past performance.
### A Look Back at Crocs’ Recent Performance
In the previous quarter, Crocs exceeded EPS expectations by $0.45, although this resulted in a 5.73% drop in the share price the following day. Here’s a quick look at Crocs’ recent earnings history and the corresponding price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 3.56 | 4.01 | -6.0% |
| Q1 2024 | 2.23 | 3.02 | -1.0% |
| Q4 2023 | 2.36 | 2.58 | -2.0% |
| Q3 2023 | 3.10 | 3.25 | 1.0% |
### Market Sentiment and Analyst Perspectives
Understanding the overall market sentiment and the perspectives of industry analysts is vital for any investor. Crocs currently has a consensus rating of ‘Outperform’ based on 6 analyst ratings, with an average one-year price target of $166.33. This suggests a potential 24.36% upside for the stock.
### Comparing Crocs to Its Peers
To gauge Crocs’ performance relative to its competitors, let’s examine the analyst ratings and average one-year price targets for three prominent players in the footwear industry:
*
Skechers USA:
Analysts maintain a ‘Buy’ status with an average one-year price target of $80.83, indicating a potential 39.57% downside.*
Birkenstock Holding:
Analysts maintain an ‘Outperform’ status with an average one-year price target of $68.38, indicating a potential 48.87% downside.*
Steven Madden:
The consensus among analysts is a ‘Neutral’ trajectory with an average one-year price target of $45.0, indicating a potential 66.36% downside.### Key Takeaways from Peer Analysis
The analysis reveals some interesting insights about Crocs’ position in the industry:
*
Revenue Growth:
Crocs ranks at the top for revenue growth among its peers, achieving a solid 3.65% growth rate in the most recent quarter.*
Gross Profit:
Crocs sits in the middle ground for gross profit.*
Return on Equity (ROE):
Crocs leads the pack with the highest return on equity, showcasing effective utilization of equity capital.### A Deeper Dive into Crocs’ Financials
Market Capitalization:
Crocs’ market capitalization currently falls below industry benchmarks, potentially influenced by factors like growth expectations or operational capacity.Revenue Growth:
Despite lagging behind some of its peers, Crocs has consistently displayed positive revenue growth over the past three months, with a noteworthy 3.65% rate as of June 30th, 2024. This demonstrates a notable increase in the company’s top-line earnings.Net Margin:
Crocs boasts an impressive net margin of 20.59%, significantly exceeding industry averages, indicating strong profitability and effective cost control.Return on Equity (ROE):
Similar to the net margin, Crocs’ ROE of 14.09% surpasses industry benchmarks, signifying efficient utilization of equity capital.Return on Assets (ROA):
Crocs showcases a strong ROA of 4.81%, exceeding industry averages, demonstrating effective utilization of assets and robust financial performance.Debt Management:
While Crocs’ high debt-to-equity ratio of 1.13 indicates potential financial strain, the company is actively working on managing its debt levels.### Stay Informed with Crocs’ Earnings Calendar
To stay up-to-date with all of Crocs’ earnings releases, visit our earnings calendar on our website.
