Crocs (NASDAQ:CROX) stock price surged after the company reported blowout earnings before the market open and raised its full-year revenue guidance, anticipating growth of 60% to 65%. The stock set a new 52 week high in early trading at $136.50 as analysts continue to recommend Crocs with many reiterating a buy on the stock
Crocs' Earnings Report Means Beats on All Fronts
For the quarter ending June 30, Crocs news proved ultimately positive on almost every front. The company posted not only beats on earnings—the company posted $2.23 per share against a Refinitiv consensus of $1.60—but also posted beats on revenue. The company turned in $640.8 million in earnings against a Refinitiv expectation calling for $565.2 million.
The company also delivered beats against its own history. The second quarter featured net income of $319 million, which worked out to $4.93 per share. Back in 2020, that net income figure was down around $56.6 million, or $0.83 per share.
Digital sales proved remarkably helpful for the company, as said sales grew 25.4% over the last year. Interestingly, even with the growth in digital sales, other sales gained sufficiently that the increased digital sales now make up a reduced portion of overall revenue. Last year, digital sales accounted for 56.1% of Crocs' revenue. Now, they account for just 36.4%. Direct to consumer sales were a major part of operations, accounting for 52% of the company's revenues in the second quarter. Direct to consumer sales grew 78.6% compared to last year, but also grew 86.4% when compared to 2019's figures.
The Crocs brand is making substantial headway worldwide, reports note. Just in the Americas, the company saw revenue growth of 135.3% for the second quarter, and CEO Andrew Rees noted that consumer demand is continuing strong outside of the Americas as well. Rees was sufficiently encouraged by the second-quarter results, as well as the ongoing momentum seen, to raise the company's full-year forecasts. Crocs expects to see third-quarter revenues between 60% and 70% higher than those seen in the third quarter of last year, when it posted $361.7 million total. Additionally, the company is looking for full-year sales to ultimately be between 60% and 65% higher than last year. Both figures, if realized, will represent significant wins against analyst outlook, which is expecting third-quarter revenue growth of 41% and full-year growth of 47.9%.
What Are Financial Analysts Saying About CROX Stock?
Crocs' impressive financial results aren't lost on the broader financial analyst community, but the community was already overwhelmingly positive on CROX stock. Crocs stock has been consensus rated as a “buy” for the last two years, and the numbers making up that recommendation have changed very little over the last year.
A year ago, Crocs stock had eight “buy” ratings to its credit, along with three “hold” ratings. That remained the case for six months to follow, and even into June of this year. Today, meanwhile, the company has eight “buy” and two “hold” ratings, showing that “buy” pressure remains static while “hold” pressure is declining, improving the overall strength of the “buy” recommendation.
Crocs share price targets occupy a surprisingly broad range. The current average price target is $112.11, with a high of $143 and a low of $53. In this case, the low is somewhat stale, as it goes back to July 2020 when it was released by Susquehanna Bancshares. With Crocs seen trading around $135 today, there is some downside risk as Crocs is closing in on the highs, and has long since passed the average.
Recent developments for the company have been much more positive. Out of all the analysts covering Crocs stock, only one—OTR Global—did not raise its price target on the company this year so far. That was largely because OTR Global only initiated coverage on Crocs stock back in January and didn't have a price target to raise. Over the course of 2021, eight analysts raised their price targets and many to substantial degrees. Loop Capital, for example, raised its target from $95 to $130. Moreover, the company is currently considered the leader in Investor's Business Daily's apparel-shoes and related manufacturing group.
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