Crocs Quarterly Earnings Sneak Peek

Crocs, Inc. (NASDAQ:CROX) will unveil its latest earnings on Wednesday, July 25, 2012. 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.

Crocs, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 63 cents per share, a rise of 3.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 65 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 63 cents during the last month. Analysts are projecting profit to rise by 18.5% compared to last year’s $1.47.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of 31 cents per share against a mean estimate of profit of 26 cents per share.

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A Look Back: In the first quarter, profit rose 31.8% to $28.3 million (31 cents a share) from $21.5 million (24 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 19.9% to $271.8 million from $226.7 million.

Stock Price Performance: Between April 24, 2012 and July 19, 2012, the stock price fell $6.18 (-28.8%), from $21.49 to $15.31. The stock price saw one of its best stretches over the last year between October 25, 2011 and November 3, 2011, when shares rose for eight straight days, increasing 9.8% (+$1.59) over that span. It saw one of its worst periods between May 11, 2012 and May 18, 2012 when shares fell for six straight days, dropping 11.9% (-$2.10) over that span.

Wall St. Revenue Expectations: On average, analysts predict $339.5 million in revenue this quarter, a rise of 14.9% from the year-ago quarter. Analysts are forecasting total revenue of $1.17 billion for the year, a rise of 17% from last year’s revenue of $1 billion.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 22.7% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 20.8% in the third quarter of the last fiscal year and 17.8% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.11 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.38 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 25.3% to $194.7 million while assets rose 15.2% to $605.1 million.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

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

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