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Factors Setting the Tone for Crocs' (CROX) Earnings in Q2
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Crocs, Inc. (CROX - Free Report) is expected to register increases in the top and bottom lines when it reports second-quarter 2022 numbers on Aug 4, before market open.
The Zacks Consensus Estimate for second-quarter earnings per share has moved down by a penny in the past 30 days to $2.75 per share. However, the estimate figure suggests a rise of 21.8% from the year-ago period’s reported number. The Zacks Consensus Estimate for revenues is pegged at $947.1 million, suggesting an improvement of 47.8% from the prior-year reported figure.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 26.5%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 31.4%.
Crocs has been gaining from sturdy consumer demand across all markets, channels and categories. Continued strength in its key products, including Clogs, Sandals and Jibbitz, bodes well. This, along with newly acquired HEYDUDE (which specializes in casual, comfortable and lightweight products), is expected to have worked in its favor in the to-be-reported quarter.
Management, in its last earnings report, projected year-over-year revenue growth of 43-49% to $918-$957 million for the second quarter.
The company’s expanded digital and omnichannel capabilities have been significant growth drivers. Its second-quarter performance is expected to have gained from robust traffic at its mobile app and global social platforms. Gains from strategic collaborations and influencer campaigns, along with digital and social marketing efforts, are expected to have been upsides.
Some other notable efforts, including price increases, fewer promotional activities and a positive product mix, are likely to have contributed to margins in the second quarter.
On its last reported quarter’s earnings call, management guided an adjusted operating margin of 26% for the second quarter.
However, Crocs has been encountering operational headwinds related to the ongoing supply-chain challenges, high inflation, rising interest rates, adverse impacts of the war in Ukraine and shutdowns stemming from the zero-COVID policy in China. The supply-chain disruptions have been challenging for manufacturers and have significantly hampered the mobility of products across the globe.
The company, on its last reported quarter’s earnings call, noted that global inflation, contributing to incremental freight costs (particularly air freight), would continue through the first half of 2022 and in 2022. It expected air freight costs of $75 million to hurt the gross margin in the first half of 2022. The company predicted second-quarter operating income to include air freight expenses of $50 million.
What Does the Zacks Model Unveil?
Our proven model does not conclusively predict a beat for Crocs this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Crocs has a Zacks Rank #3 and an Earnings ESP of -0.74%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Callaway Golf currently has an Earnings ESP of +2.69% and a Zacks Rank #2. ELY is anticipated to register top and bottom-line growth when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.1 billion, indicating an improvement of 20.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Callaway Golf’s bottom line has been unchanged in the past 30 days at 42 cents per share. The metric suggests growth of 16.7% from the year-ago quarter’s reported figure. ELY has delivered an earnings beat of 955.5%, on average, in the trailing four quarters.
Hyatt Hotels (H - Free Report) has an Earnings ESP of +216.67% and a Zacks Rank of 3 at present. The company is likely to register increases in the top and bottom lines when it reports second-quarter 2022 results. The Zacks Consensus Estimate for the quarterly loss per share is pegged at 1 cent, whereas it reported a loss of $1.15 in the year-ago quarter. The Zacks Consensus Estimate for loss has been moved down by 3 cents per share in the past 30 days.
Hyatt Hotels’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.36 billion, which suggests a rise of 105.6% from the figure reported in the prior-year quarter. H has delivered a negative earnings surprise of 383.5%, on average, in the trailing four quarters.
Dave & Buster's Entertainment (PLAY - Free Report) currently has an Earnings ESP of +1.79% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for PLAY’s quarterly revenues is pegged at $432.9 million, which suggests a rise of 14.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dave & Buster's quarterly earnings moved down 2.9% in the past 30 days to $1.02 per share, suggesting a 4.7% decline from the year-ago quarter’s reported number. PLAY has delivered an earnings beat of 41.1%, on average, in the trailing four quarters.
Image: Bigstock
Factors Setting the Tone for Crocs' (CROX) Earnings in Q2
Crocs, Inc. (CROX - Free Report) is expected to register increases in the top and bottom lines when it reports second-quarter 2022 numbers on Aug 4, before market open.
The Zacks Consensus Estimate for second-quarter earnings per share has moved down by a penny in the past 30 days to $2.75 per share. However, the estimate figure suggests a rise of 21.8% from the year-ago period’s reported number. The Zacks Consensus Estimate for revenues is pegged at $947.1 million, suggesting an improvement of 47.8% from the prior-year reported figure.
The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 26.5%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 31.4%.
Crocs, Inc. Price and EPS Surprise
Crocs, Inc. price-eps-surprise | Crocs, Inc. Quote
Key Factors to Note
Crocs has been gaining from sturdy consumer demand across all markets, channels and categories. Continued strength in its key products, including Clogs, Sandals and Jibbitz, bodes well. This, along with newly acquired HEYDUDE (which specializes in casual, comfortable and lightweight products), is expected to have worked in its favor in the to-be-reported quarter.
Management, in its last earnings report, projected year-over-year revenue growth of 43-49% to $918-$957 million for the second quarter.
The company’s expanded digital and omnichannel capabilities have been significant growth drivers. Its second-quarter performance is expected to have gained from robust traffic at its mobile app and global social platforms. Gains from strategic collaborations and influencer campaigns, along with digital and social marketing efforts, are expected to have been upsides.
Some other notable efforts, including price increases, fewer promotional activities and a positive product mix, are likely to have contributed to margins in the second quarter.
On its last reported quarter’s earnings call, management guided an adjusted operating margin of 26% for the second quarter.
However, Crocs has been encountering operational headwinds related to the ongoing supply-chain challenges, high inflation, rising interest rates, adverse impacts of the war in Ukraine and shutdowns stemming from the zero-COVID policy in China. The supply-chain disruptions have been challenging for manufacturers and have significantly hampered the mobility of products across the globe.
The company, on its last reported quarter’s earnings call, noted that global inflation, contributing to incremental freight costs (particularly air freight), would continue through the first half of 2022 and in 2022. It expected air freight costs of $75 million to hurt the gross margin in the first half of 2022. The company predicted second-quarter operating income to include air freight expenses of $50 million.
What Does the Zacks Model Unveil?
Our proven model does not conclusively predict a beat for Crocs this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Crocs has a Zacks Rank #3 and an Earnings ESP of -0.74%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Callaway Golf currently has an Earnings ESP of +2.69% and a Zacks Rank #2. ELY is anticipated to register top and bottom-line growth when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.1 billion, indicating an improvement of 20.1% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Callaway Golf’s bottom line has been unchanged in the past 30 days at 42 cents per share. The metric suggests growth of 16.7% from the year-ago quarter’s reported figure. ELY has delivered an earnings beat of 955.5%, on average, in the trailing four quarters.
Hyatt Hotels (H - Free Report) has an Earnings ESP of +216.67% and a Zacks Rank of 3 at present. The company is likely to register increases in the top and bottom lines when it reports second-quarter 2022 results. The Zacks Consensus Estimate for the quarterly loss per share is pegged at 1 cent, whereas it reported a loss of $1.15 in the year-ago quarter. The Zacks Consensus Estimate for loss has been moved down by 3 cents per share in the past 30 days.
Hyatt Hotels’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.36 billion, which suggests a rise of 105.6% from the figure reported in the prior-year quarter. H has delivered a negative earnings surprise of 383.5%, on average, in the trailing four quarters.
Dave & Buster's Entertainment (PLAY - Free Report) currently has an Earnings ESP of +1.79% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for PLAY’s quarterly revenues is pegged at $432.9 million, which suggests a rise of 14.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dave & Buster's quarterly earnings moved down 2.9% in the past 30 days to $1.02 per share, suggesting a 4.7% decline from the year-ago quarter’s reported number. PLAY has delivered an earnings beat of 41.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.