Crocs Inc. Earnings: Misses Revenue Estimate, Shares Fall

Crocs Inc. (NASDAQ:CROX) reported net income above Wall Street’s expectations for the third quarter. Crocs and its subsidiaries are engaged in the design, development, manufacturing, marketing, and distribution of consumer products, mainly casual and athletic shoes and shoe charms, from specialty resins referred to as Croslite.

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Crocs Inc. Earnings Cheat Sheet

Results: Net income for Crocs Inc. rose to $45.1 million (49 cents per share) vs. $30.2 million (33 cents per share) in the same quarter a year earlier. This marks a rise of 49.2% from the year-earlier quarter.

Revenue: Rose 7.5% to $295.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Crocs Inc. beat the mean analyst estimate of 43 cents per share. It fell short of the average revenue estimate of $339.5 million.

Quoting Management: “Our revenue growth during the third quarter reflects the benefit of balanced distribution channels globally. Our direct to consumer channel in the Americas increased 12% on year-over-year basis, highlighted by a mid single digit same store sales gain, and our expanded presence in Asia resulted in a direct to consumer sales increase of 17% in that region,” said John McCarvel, President and Chief Executive Officer. “Our Americas and Asia performance helped to more than offset weakness in the European market, where challenging macroeconomic conditions and foreign currency exchange rate fluctuations continue to pressure our results. At the same time, we haven’t been fully immune to some of the recent choppiness in Asia, particularly in Japan, where consumer demand slowed as the third quarter progressed. Despite the economic headwinds we faced during quarter, we continued to grow the business and make strategic progress toward our long-term goal of evolving Crocs into a four-season brand. For the spring summer 2013 season our wholesale pre-books have been strong. We are excited about the prospects for 2013 as enthusiasm for our products continues to grow and our opportunities globally expand.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the second quarter, net income rose 10.8% and in the first quarter, the figure rose 31.8%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the second quarter, by 5 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has risen for the last four quarters. Revenue increased 12% to $330.9 million in the second quarter. The figure rose 19.9% in the first quarter from the year earlier and climbed 13.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 11 cents a share to 10 cents over the last ninety days. The average estimate for the fiscal year is $1.52 per share, a rise from $1.50 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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