Crocs (CROX) stock surged about 24% yesterday after the footwear company reported impressive results for the fourth quarter, as both earnings and revenue exceeded estimates. Following the earnings release, two Top-rated analysts reiterated a Buy rating on CROX stock, showing confidence in the company’s growth potential.
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A Quick Look at Crocs’ Q4 Results and Outlook
In Q4 FY24, Crocs’ revenue rose 3.1% year-over-year to $990 million, driven by a 4% increase in Crocs brand revenues. Further, the company’s adjusted earnings per share came in at $2.52, beating the consensus estimate of $2.26, with support from effective cost management.
Looking ahead, Crocs issued cautious guidance for the first quarter but remains optimistic about the full year 2025. The company expects Q1 revenues to decline by 3.5% compared to the previous year, but projects full-year revenue growth between 2% and 2.5%. Analysts predict a 1.1% dip in first-quarter sales and a 1.3% increase for 2025.
Similarly, for the first quarter, CROX anticipates adjusted earnings will come between $2.38 and $2.52, falling short of the consensus estimate of $2.69. However, for 2025, the company forecasts adjusted EPS to range from $12.70 to $13.15, above analysts’ expectations of $12.68.
Analysts Upbeat on Crocs’ Growth Potential
Analysts have reacted positively to Crocs’ Q4 results and 2025 guidance. Among the bullish analysts, Christopher Nardone from Bank of America Securities, rated CROX stock a Buy yesterday. The four-star analyst noted that the impressive 2025 outlook reflects Crocs’ confidence in its financial performance.
Also, the company’s strong free cash flow supports share repurchases and debt reduction moves, boosting shareholder value. Further, Nardone believes the stock’s risk/reward profile is favorable for investors.
Another Top analyst, Tom Nikic from Needham, reiterated his Buy rating on Crocs stock. He sees potential for improvement in the HeyDude brand’s performance, adding to the stock’s appeal. Further, Nikic raised his EPS estimates for Crocs for 2025 and 2026, reflecting his confidence in the company’s earnings growth potential. Moreover, the analyst believes the stock is undervalued, given its solid performance and growth prospects.
Is CROX Stock a Buy or Sell?
Turning to Wall Street, CROX stock has a Strong Buy consensus rating based on six Buys and two Holds assigned in the last three months. At $132.86, the average Crocs stock price target implies 20.73% upside potential. Shares of the company have gained 10.2% in the past three months.
Investors should note that estimates will likely change following yesterday’s earnings report.
