Crocs, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Crocs, Inc. (NASDAQ:CROX) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of US$1.0b, some 3.9% above estimates, and statutory earnings per share (EPS) coming in at US$4.52, 47% ahead of expectations. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We’ve found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the current consensus from Crocs’ 13 analysts is for revenues of US$4.34b in 2027. This would reflect an okay 5.7% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 9.2% to US$15.87. In the lead-up to this report, the analysts had been modelling revenues of US$4.20b and earnings per share (EPS) of US$14.70 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Check out our latest analysis for Crocs

With these upgrades, we’re not surprised to see that the analysts have lifted their price target 19% to US$165per share. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. The most optimistic Crocs analyst has a price target of US$190 per share, while the most pessimistic values it at US$128. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Crocs’ past performance and to peers in the same industry. We would highlight that Crocs’ revenue growth is expected to slow, with the forecast 4.5% annualised growth rate until the end of 2027 being well below the historical 9.4% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.2% annually. So it’s pretty clear that, while Crocs’ revenue growth is expected to slow, it’s expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Crocs’ earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn’t be too quick to come to a conclusion on Crocs. Long-term earnings power is much more important than next year’s profits. At Simply Wall St, we have a full range of analyst estimates for Crocs going out to 2028, and you can see them free on our platform here..

That said, it’s still necessary to consider the ever-present spectre of investment risk. We’ve identified 2 warning signs with Crocs , and understanding them should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.