Crocs Earnings Sneak Peek

Crocs, Inc. (NASDAQ:CROX) will unveil its latest earnings on Wednesday, October 24, 2012. Crocs and its subsidiaries are engaged in the design, development, manufacturing, marketing, and distribution of consumer products, mainly casual and athletic shoes and shoe charms, from specialty resins referred to as Croslite.

Crocs, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 43 cents per share, a rise of 30.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 42 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 43 cents during the last month. For the year, analysts are projecting profit of $1.52 per share, a rise of 22.6% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of 68 cents per share against a mean estimate of profit of 63 cents per share.

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Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $2.72 (19.6%), from $13.89 to $16.61. The stock price saw one of its best stretches over the last year between October 25, 2011 and November 3, 2011, when shares rose for eight straight days, increasing 9.8% (+$1.59) over that span. It saw one of its worst periods between September 18, 2012 and September 25, 2012 when shares fell for six straight days, dropping 8.4% (-$1.49) over that span.

A Look Back: In the second quarter, profit rose 10.8% to $61.5 million (68 cents a share) from $55.5 million (61 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 12% to $330.9 million from $295.6 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 10% in revenue from the year-earlier quarter to $302.4 million.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 18.3% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 17.8% in the fourth quarter of the last fiscal year and 31.8% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.66 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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