Earnings Preview: What To Expect From Crocs On Thursday

Crocs CROX Inc. is scheduled to report earnings before Thursday’s open. The stock hit a record high of $183.88/share in late 2021 and is currently trading near $68/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

The company is expected to report a gain of $1.56/share on $624.64 million in revenue. Meanwhile, the so-called Whisper number is a gain of $1.64/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

The company’s earnings and sales have steadily grown by triple digits in the last four quarters but the rate of growth has been slowing recently. That suggests this quarter could disappoint especially when you couple the fact that the stock has plunged in the last few months.

A Closer Look At The Technicals:

The stock has plunged around 63% since its record high in late 2021. That means the stock is in a private bear market and it has a long way to go before it can hit a new high. The bulls want to see the stock break $79.51 and then $84.83 and then begin a new uptrend. The bears want to see the stock take out the recent lows near $66.50 and continue falling.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

Disclaimer: Crocs has been featured in the FindLeadingStocks.com newsletter.

Source: Forbes