Crox, Inc. - Momentum
June 20 2011 - 8:00PM
Zacks
Crox, Inc. (CROX) has been bucking the weak market, recently
hitting a new multi-year high after reporting a solid 26% earnings
surprise in late April. With estimates on the upswing and a bullish
growth projection, this Zacks #1 rank stock is a comfortable take
on momentum.
Company Description
Crox, Inc. designs and sells footwear, apparel and
accessories for men, woman and children worldwide. The company was
founded in 1999 and has a market cap of $2.07 billion.
CROX has been a strong performer in 2011, handily
outperforming the market with a 35% gain. The bullish movement has
been predicated on impressive growth, last on display with strong
Q1 results from late April that came in ahead of expectations.
First-Quarter Results
Revenue for the period was up 36% from last year to
$227 million. Earnings also looked good, coming in at 24 cents, 26%
ahead of the Zacks Consensus Estimate, where the company has an
average earnings surprise of 60% over the last four quarters.
The company continued to see strong results across
its multiple distribution channels, with wholesale sales up 37% to
$165 million and Internet sales up 35% to $17 million.
Crox also boasts strong geographic diversity, with
Americas up 35% to $100 million and Europe up 42.5% to $54
million.
Financial Profile
CROX has seen its balance sheet strengthen over the
last year as well, with cash and short-term investments up $19
million to $115.5 million against total debt of just $7
million.
Estimates
We saw some decent movement in estimates off the
good quarter, with the current year adding 5 cents to $1.11. The
next-year estimate is pegged at $1.38, a bullish 24% growth
projection.
Valuation
But in spite of recent gains, CROX still has value,
trading with a PEG ratio of .88, safely below the benchmark for
value of 1.
12-Month Chart
On the chart, shares have been grinding higher for
most of the year, recently hitting a new multi-year high on the
good quarter and rising estimates. Look for support from the
long-term trend on any weakness, take a look below.
![](http://www.zacks.com/images/upload_dir/1308589347.jpg)
Michael Vodicka is the Momentum Stock Strategist
for Zacks.com. He is also the Editor in charge of the new Zacks
Momentum Trader Service.
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