Crocs, Inc. (CROX) will host a conference call to discuss the results of its third quarter ended September 30, 2023, before the market opens on Thursday, November 2, 2023. (1)
Wall Street expects the company to earn $3.10 per share (EPS) with sales of $1.03 billion. (2) Both numbers are better than last year’s EPS of $2.97 and $944.18 million, respectively. Raymond James analyst Rick Patel must be expecting a solid quarter as he upgraded the stock to an “outperform” rating and lifted his price target to $110 on the eve of earnings news. (3) From our experience, analysts tend to shy away from recommendation changes prior to quarterly results. It’s too easy to be wrong.
Crocs designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children worldwide. It offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, shoe charms, and slippers under the Crocs brand name. The company sells its products in approximately 85 countries through wholesalers, retail stores, e-commerce sites, and third-party marketplaces.
The overall market’s direction notwithstanding, CROX shares could have room to run if results are better than expected. Shares were as high as $130 in late July. It trades at $87.52 as of the close on Wednesday, October 25, 2023. The Wednesday close puts CROX shares close to its 50-day moving average of $90.09 and the top end of its five-week trading range. Moving north of both levels of resistance would likely be seen as a technical buy signal and put resistance at $100 into play. On the downside, a disappointing result would likely be limited to support at the bottom of CROX’s recent range at $82ish.
Trading earnings is as risky as it gets and is only appropriate for the most aggressive investors who can afford to lose money in short timeframes.
1 – https://finance.yahoo.com/news/crocs-inc-announces-conference-call-123000845.html
2 – https://finance.yahoo.com/quote/CROX/analysis?p=CROX
3 – https://finance.yahoo.com/video/crocs-bowlero-citi-initiates-mattel-152613836.html