Oct 18, 2024, 1:58 PM
Oct 18, 2024, 1:58 PM

What's In Store For Crocs Q3 Earnings? Analyst Eyes North America Trends - Crocs (NASDAQ:CROX)

Highlights
  • BofA Securities projects an EPS of $3.17 for Crocs, exceeding previous guidance and reflecting a 5.8% sales growth.
  • The forecast indicates a decline in Heydude sales by 15%, while focus remains on North American sales trends post-Amazon transition.
  • Analysts are optimistic about Crocs' performance, hoping for stability in North America as they prepare for the earnings call on October 29.
Story

Crocs, Inc., based in the United States, is set to discuss its third-quarter earnings results on October 29, 2024. BofA Securities analyst Christopher Nardone has maintained a Buy rating for the stock, projecting earnings per share (EPS) of $3.17, surpassing previous guidance. This positive forecast comes with the expectation of a 5.8% sales growth, attributed to international market performance, while sales from its Heydude brand are anticipated to drop by 15%. The upcoming earnings call will notably focus on North American sales trends, particularly following Crocs' shift to direct-to-consumer sales after transitioning away from Amazon.com in September. Analysts are concerned about potential adverse effects on sales during this transition period. Given that Crocs has a history of improving sales outlooks in subsequent quarters, investors are hopeful for confirmation of stable or increasing sales in North America. Citing a favorable risk/reward scenario with a 10x P/E ratio, Nardone forecasts that this trend may continue, setting a conservative fourth-quarter EPS estimate of $2.66, which aligns with higher annual earnings projections to $12.86 for fiscal year 2024. As the market prepares for these earnings results, Crocs' performance continues to attract significant attention from investors and analysts alike.

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