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Why Crocs (CROX) Could Beat Earnings Estimates Again


Looking for a stock that might be in a good position to beat earnings at its next report? Consider Crocs, Inc. CROX, a firm in the Textile – Apparel, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, CROX has beaten estimates by at least 80% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, CROX expected to post earnings of 3 cents per share, while it actually produced earnings of 11 cents per share, a beat of 266.7%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 15 cents per share, when it actually produced earnings per share of 27 cents instead, representing a 80% positive surprise.

Crocs, Inc. Price and EPS Surprise

Crocs, Inc. Price and EPS Surprise | Crocs, Inc. Quote

Thanks in part to this history, recent estimates have been moving higher for Crocs. In fact, the Earnings ESP for CROX is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for CROX, as the firm currently has a Zacks Earnings ESP of +5.88%, so another beat could be around the corner.

This is particularly true when you consider that CROX has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that CROX could see another beat at its next report, especially if recent trends are any guide.

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