Factors Likely to Influence Crocs' (CROX) Earnings in Q1
Crocs, Inc. CROX is expected to register an increase in the top and bottom lines when it reports first-quarter 2022 numbers on May 5, before market open. The Zacks Consensus Estimate for first-quarter earnings per share has been unchanged at $1.56 in the past 30 days, suggesting a rise of 4.7% from earnings of $1.06 reported in the year-ago period. The Zacks Consensus Estimate for revenues is pegged at $624.6 million, suggesting an improvement of 35.8% from the prior-year reported figure.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 36%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 7%.
Key Factors to Note
Crocs has been gaining from sturdy consumer demand across all markets, channels and categories. Continued strength in its key products, including Clogs, Sandals and Jibbitz, bodes well. This, along with the newly acquired HEYDUDE (which specializes in casual, comfortable and lightweight products), is expected to have worked in its favor in the to-be-reported quarter. Including the HEYDUDE buyout, management, in its last earnings report, projected year-over-year revenue growth of 31-37% to $605-$630 million for the first quarter. Meanwhile, revenues are expected to be $520-$535 million, excluding the acquisition, which suggests organic growth of 13-16%.
The company’s expanded digital and omnichannel capabilities have been significant growth drivers. Its first-quarter performance is expected to have gained from robust traffic at its mobile app and global social platforms. Gains from strategic collaborations and influencer campaigns, along with digital and social marketing efforts, are expected to have remained upsides.
Some other notable efforts, including price increases, fewer promotional activities and a positive product mix, are likely to have contributed to margins in the first quarter. On its last reported quarter’s earnings call, management guided an adjusted operating margin of 22% for the first quarter.
However, Crocs has been witnessing supply-chain disruptions, which have hampered the mobility of products across the globe. Port congestions, increasing material costs and a shortage of truck drivers have been concerning.
The company, on its last reported quarter’s earnings call, noted that global inflation, particularly air freight, will continue through the first half of 2022. It expected air freight costs of $75 million to hurt gross margins in the first half of 2022, with air freight expenses of $30 million for the first quarter of 2022.
Crocs, Inc. Price and EPS Surprise
Crocs, Inc. price-eps-surprise | Crocs, Inc. Quote
What Does the Zacks Model Unveil?
Our proven model does not conclusively predict a 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Crocs has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
SeaWorld Entertainment SEAS has an Earnings ESP of +38.64% and it currently sports a Zacks Rank #1. SEAS is anticipated to register top-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $261.8 million, indicating an improvement of 52.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SeaWorld Entertainment’s bottom line has narrowed down by a penny in the past 30 days to a loss of 15 cents per share. However, the metric suggests growth of 73.7% from the year-ago quarter’s reported figure. SEAS has delivered an earnings beat of 137.2%, on average, in the trailing four quarters.
Planet Fitness PLNT has an Earnings ESP of +22.68% and a Zacks Rank of 2 at present. The company is likely to register an increase in the bottom line when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has been unchanged at 27 cents per share in the past 30 days, suggesting an increase of 170% from the year-ago quarter’s reported number.
Planet Fitness’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $188 million, which suggests a rise of 68% from the figure reported in the prior-year quarter. PLNT has delivered an earnings beat of 0.3%, on average, in the trailing four quarters.
Gildan Activewear GIL currently has an Earnings ESP of +10.20% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings moved up by a penny in the past 30 days to 49 cents per share, suggesting 2.1% growth from the year-ago quarter’s reported number.
Gildan Activewear’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $652.2 million, which suggests a rise of 10.6% from the figure reported in the prior-year quarter. GIL has delivered an earnings beat of 66.6%, on average, in the trailing four quarters.
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Crocs, Inc. (CROX) : Free Stock Analysis Report
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