Crocs (CROX) PT, Estimates Cut at Piper Jaffray

Piper Jaffray analyst Erinn Murphy lowered estimates and her price target on Neutral-rated Crocs (NASDAQ: CROX) to $9.00 (from $10.50) as in-line Q4 revenue was weighed down by gross margin.

Murphy commented, "We are lowering our price target and reiterating our Neutral rating on CROX following Q4's profitability miss. While revenue was inline, gross margin missed our estimate handily and was down ~600 bps Y/Y while the adjusted net loss was roughly two times worse than our forecast. Management gave Q1 sales guidance of $260M-$270M, slightly below our $273M estimate and the Street at $271M. Despite incremental revenue headwinds in 2016 including FX and the transition of South Africa from an owned to a licensed region, the company reaffirmed FY16 guidance of +MSD revenue growth and MSD op margin. On the call, guidance was clarified as being more 2H weighted which concerns us given the many unknowns in the current retail environment. As such, we are reducing our estimates--in particular for 1H. Our PT moves from $10.50 to $9 based on 15x (same multiple) plus cash our FY17 EPS, and we maintain a wait-and-see approach with respect to the stock."

The firm lowered FY 2016 EPS from $0.16 to $0.12 and FY 2017 EPS from $0.55 to $0.48.

For an analyst ratings summary and ratings history on Crocs click here. For more ratings news on Crocs click here.

Shares of Crocs closed at $9.79 yesterday.

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