Why the Earnings Streak Will Continue for Crocs (CROX)

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Crocs, Inc. CROX, a firm in the Textile – Apparel industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, CROX has beaten estimates by at least 80% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, CROX expected to post 12 cents per share, while it actually produced 27 cents per share, a beat of 80%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 4 cents per share, when it actually saw earnings of 2 cents per share instead, representing a 150% positive surprise.

Crocs, Inc. Price and EPS Surprise

Crocs, Inc. Price and EPS Surprise | Crocs, Inc. Quote

 

Thanks in part to this history, recent estimates have been moving higher for Crocs. In fact, the Earnings ESP for CROX is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for CROX, as the firm currently has a Zacks Earnings ESP of +0.42%, so another beat could be around the corner.

This is particularly true when you consider that CROX has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that CROX could see another beat at its next report, especially if recent trends are any guide.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Crocs, Inc. (CROX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research