Earnings Preview: Will Investors Kick CROCS (CROX) to the Curb Following Q2 Results? (AAPL, TBL, SKX, More...)
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Shares of CROCS Inc. (Nasdaq: CROX) are trading higher ahead of the company's second quarter earnings report, expected after the market closes today, August 5, 2010. Shares are up 0.8% to $12.50.
CROX is expected to report an EPS of $0.22 on revs of $220.6 million. Last quarter, the company reported an EPS of $0.07 and revs of $166.9 million, both beating the consensus EPS of $0.02 and revs of $159.95 million. For Q209, CROX had a loss of $0.06 per share on revs of $198 million, which decimated views for a $0.21 loss and $149.94 million in revs.
Shares of the company gained 20.5% through the quarter, to $10.58 at the end of June. Shares are currently up over 108% YTD. By comparison, shares of Skechers USA Inc. (NYSE: SKX) are up just over 16% since the start of 2010.
The stock is trading for a forward P/E of 26.4x FY10 EPS estimates, compared to 9.0x for Skechers, 14.0x for Timberland Co. (NYSE: TBL), and 14.3x for Deckers Outdoor (Nasdaq: DECK).
Data from Bloomberg has 4 analysts with a Buy rating, 1 with a Hold, and one suggesting to Sell the shares. The analyst price target average is $12.25, with a high of $15, and a low of $10.
Analyst Ratings Through the Quarter
In May, Piper Jaffray reiterated their Overweight rating, and raised their price target from $9 to $13, noting that growth for the company is happening in all of the right places. The firm increased their price target on the shares from $13 to $14 in last June, citing the company's focus on execution, promotions, and product lines.
DA Davidson upgraded the shares from Neutral to Buy, with a price target increased from $10 to $15, following better than expected Q110 earnings.
Summary
Crocs are, by and large, the bestselling shoes on Amazon.com (Nasdaq: AMZN). They are seven of the top ten overall favorites, with their Toddler/Little Kid shoe coming in second. The shoes are currently fighting it out with Teva and Reef for top spot dominance on the website, but clearly hold an overwhelming lead.
Consider the significance of this. Amazon is a huge, global retailer, and millions must look at their best seller list, see 'Crocs' this or 'Crocs' that, and click on the product to see what all of the hullabaloo is about. They note the price, fun colors, reviews, and then buy a pair themselves.
It doesn't stop at Amazon, however. Checks at our local malls had Crocs selling at a kiosk in the middle of the mall, as well as several retailers, such as Macy's (NYSE: M), in specially designated racks. The brand is to shoes what Apple (Nasdaq: AAPL) is to electronics; people buy them for the variety and usefulness of the product [though a sandal may not be as forward thinking as an iPad, the way it’s designed is certainly unique].
The question is, with market cap of over $1 billion, selling far above highs seen in 2008, and netting 108% gain YTD so far, is there much room left for Crocs to run?
Remember the last time around for Crocs-mania? It ended ugly for shareholders.
CROCS Inc. is expected to release their Q210 earnings on Wednesday, August 5, 2010, at approximately 4:00pm EDT. Stay tuned to StreetInsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
CROX is expected to report an EPS of $0.22 on revs of $220.6 million. Last quarter, the company reported an EPS of $0.07 and revs of $166.9 million, both beating the consensus EPS of $0.02 and revs of $159.95 million. For Q209, CROX had a loss of $0.06 per share on revs of $198 million, which decimated views for a $0.21 loss and $149.94 million in revs.
Shares of the company gained 20.5% through the quarter, to $10.58 at the end of June. Shares are currently up over 108% YTD. By comparison, shares of Skechers USA Inc. (NYSE: SKX) are up just over 16% since the start of 2010.
The stock is trading for a forward P/E of 26.4x FY10 EPS estimates, compared to 9.0x for Skechers, 14.0x for Timberland Co. (NYSE: TBL), and 14.3x for Deckers Outdoor (Nasdaq: DECK).
Data from Bloomberg has 4 analysts with a Buy rating, 1 with a Hold, and one suggesting to Sell the shares. The analyst price target average is $12.25, with a high of $15, and a low of $10.
Analyst Ratings Through the Quarter
In May, Piper Jaffray reiterated their Overweight rating, and raised their price target from $9 to $13, noting that growth for the company is happening in all of the right places. The firm increased their price target on the shares from $13 to $14 in last June, citing the company's focus on execution, promotions, and product lines.
DA Davidson upgraded the shares from Neutral to Buy, with a price target increased from $10 to $15, following better than expected Q110 earnings.
Summary
Crocs are, by and large, the bestselling shoes on Amazon.com (Nasdaq: AMZN). They are seven of the top ten overall favorites, with their Toddler/Little Kid shoe coming in second. The shoes are currently fighting it out with Teva and Reef for top spot dominance on the website, but clearly hold an overwhelming lead.
Consider the significance of this. Amazon is a huge, global retailer, and millions must look at their best seller list, see 'Crocs' this or 'Crocs' that, and click on the product to see what all of the hullabaloo is about. They note the price, fun colors, reviews, and then buy a pair themselves.
It doesn't stop at Amazon, however. Checks at our local malls had Crocs selling at a kiosk in the middle of the mall, as well as several retailers, such as Macy's (NYSE: M), in specially designated racks. The brand is to shoes what Apple (Nasdaq: AAPL) is to electronics; people buy them for the variety and usefulness of the product [though a sandal may not be as forward thinking as an iPad, the way it’s designed is certainly unique].
The question is, with market cap of over $1 billion, selling far above highs seen in 2008, and netting 108% gain YTD so far, is there much room left for Crocs to run?
Remember the last time around for Crocs-mania? It ended ugly for shareholders.
CROCS Inc. is expected to release their Q210 earnings on Wednesday, August 5, 2010, at approximately 4:00pm EDT. Stay tuned to StreetInsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
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