Crocs Lifts 2020 Sales Outlook; Shares Spike 12%
Crocs stock popped 12.3% on Monday after the casual footwear and accessories manufacturer raised its revenue guidance for 4Q and 2020 above analysts’ expectations. The company expects to report 4Q results in late-February.
Crocs (CROX) projects 4Q revenue to increase about 55% year-over-year to between $407 million and $410 million. Analysts had been looking for $330 million. The 4Q revenue growth rate compares to the 20% to 30% forecasted in previous guidance.
As for 2020, the company anticipates sales to grow over 12%, almost double the growth rate of about 5% to 7% guided previously. Crocs expects to generate $1.381 billion to $1.384 billion in revenue in 2020, beating the Street estimates of $1.304 billion.
For 2021, Crocs sees its top-line to increasing by 20% to 25% versus 2020 levels. (See CROX stock analysis on TipRanks)
On Jan. 11, Pivotal Research analyst Mitch Kummetz ramped up the stock’s price target to $87 (16.1% upside potential) from $68 and maintained a Buy rating, after “CROX reported much-better-than-expected 4Q sales.” The analyst also raised his estimates for 4Q and 2021.
From the rest of the Street, the stock scores a bullish outlook with the analyst consensus of a Strong Buy based on 8 Buys and 2 Holds. The average analyst price target of $68.22 implies downside potential of about 9% to current levels. Shares have already gained 74.8% over the past year.
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