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Crocs (CROX) to Report Q3 Earnings: What Awaits the Stock?

Vidya Nair
·3-min read

Crocs, Inc. CROX is likely to register top- and bottom-line growth when it reports third-quarter 2020 numbers on Oct 27, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $345.1 million, which indicates growth of 10.3% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for the bottom line is pegged at 68 cents per share, which suggests an improvement of 19.3% from the year-ago quarter’s figure. The consensus estimate went up by a penny in the past 30 days. Notably, this renowned footwear retailer’s bottom line outperformed the Zacks Consensus Estimate by a wide margin in the last reported quarter.

Aspects That May Impact Q3 Metrics

Crocs is among the few apparel companies that is gaining from healthy consumer demand amid the coronavirus pandemic. With work-from-home and stay-at-home trends being the new normal, people are leaving home only for essential purposes.

Thus, consumers are curbing spending on fancy apparel products and shifting to more comfortable collections. Crocs, which is renowned for its casual and comfortable footwear styles and designs, is certainly reaping benefits from the ongoing trends.

Notably, management had earlier provided a positive revenue outlook for the third quarter on the back of robust demand and solid sell-throughs. The company envisions revenues to grow nearly 10% in the said period.

To top these, the company’s store reopening strategies, wide array of products, solid online show, licensing partnerships, collaborations with celebrities and social media influencers are also likely to have favored third-quarter results.

However, any adverse movement in currency exchange rates is likely to have been a headwind during the quarter under review. We note that Crocs’ business is spread internationally across regions like Asia Pacific and EMEA (Europe, Middle East, and Africa). This makes it susceptible to foreign currency exchange rates.

Crocs, Inc. Price, Consensus and EPS Surprise

Crocs, Inc. Price, Consensus and EPS Surprise
Crocs, Inc. Price, Consensus and EPS Surprise

Crocs, Inc. price-consensus-eps-surprise-chart | Crocs, Inc. Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Crocs this earnings 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Crocs sports a Zacks Rank #1 and an Earnings ESP of +2.56%.

Stocks Poised to Beat Earnings Estimates

Here are some more companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

News Corp. NWSA currently has an Earnings ESP of +75% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Deckers Outdoor Corp. DECK has an Earnings ESP of +0.95% and a Zacks Rank #2, at present.

Ralph Lauren Corp. RL currently has an Earnings ESP of +6.22% and a Zacks Rank #2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


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Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
 
News Corporation (NWSA) : Free Stock Analysis Report
 
Ralph Lauren Corporation (RL) : Free Stock Analysis Report
 
Crocs, Inc. (CROX) : Free Stock Analysis Report
 
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