What to expect from Crocs’s (CROX) Q3 earnings

Footwear company Crocs (NASDAQ:CROX) will be reporting results this Thursday before market hours. Here’s what to look for.

Crocs beat analysts’ revenue expectations last quarter, reporting revenues of $1.18 billion, up 2.6% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates.

Is Crocs a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Crocs’s revenue to be flat year on year, improving from the 6.2% decrease it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Crocs rarely misses Wall Street’s revenue estimates.

Looking at Crocs’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 4.3% year on year, missing analysts’ expectations by 1%, and Deckers reported revenues up 3.5%, falling short of estimates by 1.8%. Nike traded down 3.6% following the results while Deckers was also down 4.9%.

Read our full analysis of Nike’s results here and Deckers’s results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Crocs is down 2.6% during the same time and is heading into earnings with an average analyst price target of $138.75 (compared to the current share price of $119.22).

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