Crocs, Inc.
By: Michael Vodicka
June 21, 2011 |
Crocs, Inc. (CROX - Snapshot Report) has been bucking the weak market, recently hitting a new multi-year high after reporting a solid 26% earnings surprise in late April. With estimates on the upswing and a bullish growth projection, this Zacks #1 rank stock is a comfortable take on momentum.
Company Description
Crocs, Inc. designs and sells footwear, apparel and accessories for men, woman and children worldwide. The company was founded in 1999 and has a market cap of $2.07 billion.
CROX has been a strong performer in 2011, handily outperforming the market with a 35% gain. The bullish movement has been predicated on impressive growth, last on display with strong Q1 results from late April that came in ahead of expectations.
First-Quarter Results
Revenue for the period was up 36% from last year to $227 million. Earnings also looked good, coming in at 24 cents, 26% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 60% over the last four quarters.
The company continued to see strong results across its multiple distribution channels, with wholesale sales up 37% to $165 million and Internet sales up 35% to $17 million.
Crocs also boasts strong geographic diversity, with Americas up 35% to $100 million and Europe up 42.5% to $54 million.
Financial Profile
CROX has seen its balance sheet strengthen over the last year as well, with cash and short-term investments up $19 million to $115.5 million against total debt of just $7 million.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year adding 5 cents to $1.11. The next-year estimate is pegged at $1.38, a bullish 24% growth projection.
Valuation
But in spite of recent gains, CROX still has value, trading with a PEG ratio of .88, safely below the benchmark for value of 1. |
