Earnings Preview: Crocs

Crocs (CROX) is expected to report Q3 earnings after market close Wednesday, November 12, with a conference call scheduled for 4:30 pm ET.

Guidance

Analysts are looking for a profit of 2c on revenue of $201.79M. The consensus range is (2c) to 3c for EPS, and revenue of $196.63M to $208.2M, according to First Call. In August, Crocs forecast Q3 EPS 1c to 5c.

Analyst Views

Wedbush Morgan expects Q3 EPS will be in line with the consensus. While near-term is likely to be very challenging, the firm says that its new strategy raises hopes for the long-term future of the business. The firm's FY09 EPS estimate for 47c is dependent whether Crocs can reduce its cost structure. Due to rising food and fuel prices, as well as the housing market crisis, credit crunch and increased job losses, consumers in the U.S. have cut back significantly on discretionary purchases.

Given the global economic downturn, Baird believes that Crocs, which has cut nearly 130 jobs since August, will continue to struggle next year. Additionally, the firm says that the company's international business will be "particularly challenging" because of the current environment. On October 6, the company announced that it sold certain assets of its Foam Creations business unit to a Canadian corporation led by Foam Creations founder, Andrew Reddyhoff.

Comments

[Dan Jacome:]

-45% today...what a dog!

2008 Nov 12 05:52 PM