Factors Likely to Support Crocs' (CROX) Earnings Beat in Q3
Crocs, Inc. CROX is scheduled to release third-quarter 2023 results on Nov 2, before market open. This leading footwear brand company is expected to have witnessed year-over-year revenue growth in the to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter earnings per share has moved down 0.6% in the past 60 days at $3.09 per share. The consensus estimate suggests an increase of 4% from the year-ago period’s reported number. The Zacks Consensus Estimate for revenues is pegged at $1.03 billion, suggesting an improvement of 4.3% from the prior-year reported figure.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 19.9%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 20.5%.
Crocs, Inc. Price and EPS Surprise
Crocs, Inc. price-eps-surprise | Crocs, Inc. Quote
Key Factors to Note
Crocs’s third-quarter 2023 sales are likely to have benefited from the continued strong consumer demand for its new clog and sandal designs.
Additionally, the acquisition of HEYDUDE, a privately owned brand specializing in lightweight and casual shoes and sandals for men, women, and children, is expected to have contributed to growth in the footwear business in the to-be-reported. The HEYDUDE brand is also likely to have diversified Crocs’ brand portfolio and added to its digital penetration, driven by its strong online presence.
We expect revenues for the HEYDUDE brand to increase 2.8% year over year in third-quarter 2023. Our model predicts revenues for the Crocs brand to improve 4.3% year over year in the to-be-reported quarter.
On its last reported quarter’s earnings call, management expected third-quarter 2023 revenues to grow 3-5% to $1,013-$1,034 million. Adjusted earnings are forecast to be $3.07-$3.15 per share and the adjusted operating margin is likely to be 27%. We estimate the bottom line to advance 3.5% to $3.08, whereas the top line is predicted to grow 3.9% to $1023.5 million.
However, Crocs has been facing some challenges related to the current economic environment. Costs related to the HEYDUDE acquisition are likely to have been concerning. Our model indicates a 7.7% year-over-year increase in adjusted SG&A expenses.
What Does the Zacks Model Unveil?
Our proven model conclusively predicts an earnings beat for Crocs this 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 currently has a Zacks Rank #3 and an Earnings ESP of +0.88%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Caesars Entertainment CZR currently has an Earnings ESP of +37.22% and a Zacks Rank #2. CZR is likely to register top and bottom-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.92 billion, suggesting 1% growth 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 Caesars Entertainment’s third-quarter earnings is pegged at 26 cents, suggesting 8.3% growth from the 24 cents reported in the year-ago quarter. The consensus mark has moved up by 2 cents in the past 30 days.
Marriott International MAR currently has an Earnings ESP of +1.59% and a Zacks Rank #3. MAR is likely to register top and bottom-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $5.91 billion, suggesting 11.2% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Marriott’s third-quarter earnings is pegged at $2.09, suggesting year-over-year growth of 23.8%. The consensus mark has moved up by a penny in the past 30 days.
Cinemark Holdings CNK currently has an Earnings ESP of +70.56% and a Zacks Rank #3. The company is likely to register top and bottom-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $798.6 million, suggesting 22.8% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Cinemark Holdings’ third-quarter earnings is pegged at 33 cents, suggesting 265% growth from that reported in the year-ago quarter. The consensus mark has moved up by a penny in the past 30 days.
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Marriott International, Inc. (MAR) : Free Stock Analysis Report
Crocs, Inc. (CROX) : Free Stock Analysis Report
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