Crocs Stock Rallies As Q2 Results Beat Analyst Estimates
Shares of Crocs moved to all-time high levels after the company released its second-quarter results. The company reported revenue of $640.8 million and adjusted earnings of $2.23 per share, easily beating analyst estimates on both earnings and revenue.
The company stated that its full-year revenue growth would be 60% – 65% compared to 2020 revenue of $1.39 billion, above its previous guidance which called for growth of 40% – 50%.
Crocs also stated that $80 – $100 million will be invested in 2021 in supply chain to support its growth. Previously, the company expected to invest $100 million – $130 million.
What’s Next For Crocs Stock?
Back in March 2020, Crocs stock made an attempt to settle below the $10 level. Today, the stock tried to get above the $136 level. This is a very impressive move which was driven by increased demand for casual footwear during the pandemic as more people began to work remotely.
Analysts expect that Crocs will report earnings of $5.72 per share in 2021. Next year, the company is projected to report a profit of $6.44 per share. It should be noted that analyst estimates for 2021 and 2022 have been rising steadily which is a bullish catalyst for the stock.
At current price levels, Crocs stock is trading at about 20 forward P/E, which does not look overpriced in the current market environment. The recent growth has been impressive, and the key question is whether the company will be able to maintain the solid pace of growth as the world gets closer to normal life.
In the near term, traders may choose to take some profits off the table as the stock showed great performance in 2021. However, Crocs stock has a decent chance to continue its upside move as the company’s valuation remains rather conservative in the current market environment when high-growth companies easily trade at sky-high valuation levels.
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