Crocs (NASDAQ: CROX), manufacturer of those ubiquitous, brightly colored plastic shoes (I like to think of them as a modern-day "Jelly Shoe"), reported earnings after the closing bell today. Altogether, the announcement was a mixed bag of tricks and treats. Third-quarter net income sprinted higher to $56.5 million, or 66 cents per share, more than doubling year-ago results. YAY! The results were 3 cents above analysts' earnings estimates. Double YAY!
Revenue was also solid, spiking 130% to $256.3 million! But this headline figure failed to match analysts' estimates of $258.4 million. OH.But! The firm lifted its 2007 earnings-per-share target to $1.94 to $1.98 per share, with revenue expected to reach $820 million to $830 million! YAY! Unfortunately, these new figures fail to meet analysts' earnings and revenue expectations of $1.97 per share and $835.7 million, respectively. OH.
In a press release, company president/CEO Ron Snyder assured investors that "Our year-to-date performance has been marked by significant gains in sales and earnings, robust international expansion, a number of high-profile licensing agreements and the continued build out of our global infrastructure."
Investors responded with a resounding BOO! ... in after-hours trading, the stock has plunged nearly 23% to slip below the $60 level. This was the site of robust put trading today (at the November 60 strike) and is also home to the equity's 80-day moving average. It's possible that in the light of the trading day tomorrow, CROX could benefit from this double-tiered technical and options-related support, but it still won't be a pretty day for the bulls, even if an intraday reversal is in the cards.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
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Reader Comments (Page 1 of 1)
10-31-2007 @ 11:52PM
magliano said...
CROX tanks with a total capital lose of 1.5 BILLION because its revenue was 2 MILLION less than anticipation. Appears to be a no brainer to me. I am more than happy to throw the 100K I lost back to the company knowing I will get it back in a month.
11-01-2007 @ 12:22AM
BhhStudios said...
OR
It could be a sign that sales are slowing and we are coming into winter and the market on shoes with holes in it for winter are not on the top of most peoples list.. But that's just logical thinking. That or the fad is over and its growth rate is going to be crawling for a while if not ever....
Your money to loose not mine.
11-01-2007 @ 1:26AM
pete said...
crox were just banned in the school district where I live- if more follow suit, will mothers of all of these little girls still be buying 5 and 6 pairs at a time? I doubt it- time to get out!
11-01-2007 @ 9:54AM
slacker said...
Beth, Beth, Beth. You had 5 hours before you blogged about CROX. How'd you get the numbers wrong?
11-01-2007 @ 4:31PM
Mr. Bigg said...
Crocs performance is solid, they will rebound.
The accuracy of this article is not so solid. In reporting the 2007 earnings per share, which was raised by Crocs up to $1.94 - $1.98 per share on revenues of $820 to $830 million (Yay), the article wrongly reports that Croxs "fails to meet analysts' earnings and revenue expectations of $2.56 per share and $1.13 billion, respectively. OH" Just so we are all on the same page, those are the 2008 analysts' expectations, not 2007, and are below the estimates of $2.62 to $2.77 per share on revenues of $1.11 to 1.16 billion based on Crocs guidence of a forcasted 35-40% revenue growth over the 2007 projections. Yay. Let's keep the years in order.
Love Crocs products, love Crocs stock.
11-01-2007 @ 11:24PM
Donald said...
Thanks for a fair and accurate appraisal of Crox, to bad Jim Cramer didn't read the same article's concerning Crox and
Taser. In fact ,I wonder, if when he was man about college(Mr Booyah) if he treated his girl friends, like he has treated the above mention stocks."i'm now saying i'm done with Crocs, i didn't like the quarter". Well, i know doubling income quarter after quarter,after becoming an public traded company is common, because taser has done the same thing in their income sofar this year and Mr. Booyah, say's " You know, I recommended this stock, it had a pretty good run with it.I feel like i'm overstaying my Welcome. I personally feel like lets just take the gain" . (I 'm sorry, Sport Fans , I'm now confused. Company's post double, their income from their last quarter have exceeded the anylist oppion and they say their International Business is growing in excess of 100% per year over last year. Wow, Mr Booyay, I think your right sell
Crox and Tasr and buy (googe ,Baidu).I only have a few problem's if you take 23% loss on higher priced stock you take a bigger hit .Could this be right? Is it me or am i just plain dumb or an Idiot,because, I read Mr. Booyah article saying "Market players should be buying things even though they are overvalved. although this may seem irresponsible,Traditional market thinking is not going to get people anywhere right now!" Wow, I am really in trouble!! He then say's that is( Mr. Booya says),"Investors should set aside Negative economic News and Concerns about overvalue and just concentrate on buying stocks and making Money." Wow'ee now I'm really going to get pumped and dumped, or is it in my case ,like a suppository dumped and pumped. So Fun seeker's good luck out there and keep the faith