Crocs Sees Q4 Adj. EPS Below Street, FY24 EPS At High End, Revenue At Low End Of Range; Stock Down

(RTTNews) - Casual footwear Crocs Inc. (CROX), while reporting higher profit and revenues in its third quarter above market, on Tuesday issued fourth-quarter earnings outlook below the Street. Further, the company now sees fiscal 2024 earnings at the high end of prior guidance, but revenues at the lower end of range.

In pre-market activity on the Nasdaq, Crocs shares were losing around 14.2 percent to trade at $118.49.

Outlook

For the fourth quarter, the company projects adjusted earnings per share of $2.20 to $2.28.

Analysts on average expect the company to report earnings of $2.72 per share for the quarter, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Adjusted operating margin is expected to be approximately 19.5 percent.

Revenues would be flat to up slightly compared to last year, at constant currency rates.

Crocs Brand would grow approximately 2 percent, while HEYDUDE Brand would be down 4 percent to 6 percent.

Further, for fiscal 2024, Crocs now expects adjusted earnings per share of $12.82 to $12.90, at the high end of prior guidance of $12.45 to $12.90. The Street expects earnings of $12.86 per share for the year.

Adjusted operating margin would be more than 25 percent.

Revenue growth is now expected to be around 3 percent at constant currency rates, at the lower end of prior guidance of 3 percent to 5 percent.

Revenues for the Crocs Brand is now expected to grow approximately 8 percent, versus growth of 7 percent to 9 percent expected earlier. Revenues for the HEYDUDE Brand would be down around 14.5 percent, compared to previously expected drop of 8 percent to 10 percent.

Q3 Results

In its third quarter, Crocs reported that its profit increased from the same period last year and beat the Street estimates.

The company's bottom line totaled $199.80 million, higher than $177.03 million last year. Earnings per share improved 17.1 percent to $3.36 from $2.87 a year ago.

Adjusted earnings were $213.97 million or $3.60 per share for the period, compared to $3.25 per share a year ago.

Analysts had expected the company to earn $3.10 per share.

The company's revenue for the quarter rose 1.6 percent to $1.062 billion from $1.045 billion last year. Consolidated revenues increased 2 percent on a constant currency basis.

The Street was looking for revenues of $1.05 billion for the quarter.

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