Key Stats for CROX Stock
- Price change for CROX stock: -1.6%
- CROX Share Price as of February 13: $96.88
- 52-Week High: $122.84
- CROX Stock Price Target: $108.37
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What Happened?
Crocs (CROX) stock fell 1.6% on Thursday after the company reported fourth-quarter earnings that exceeded analyst expectations but showed continued pressure on margins and profitability.
The footwear maker posted revenue of $958 million, which exceeded Wall Street estimates by 4.4%, but still declined 3.3% compared to the same quarter last year.
Adjusted earnings per share came in at $2.29, beating analyst expectations by nearly 20%, although EPS declined 9.1% year over year as operating costs rose.
EBITDA totaled $181 million, representing an 11.9% beat versus estimates, but EBITDA margins fell to 19%, down more than 300 basis points from the prior year.
Operating income declined nearly 20% year over year, reflecting higher selling, general, and administrative expenses alongside weaker volume trends.
While Crocs continued its streak of earnings beats, investors appeared more focused on the deterioration in margins and slowing growth rather than the headline EPS results.
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What the Market Is Telling Us About CROX Stock
The market’s reaction suggests investors are increasingly cautious about Crocs’ near-term profitability and longer-term growth outlook.
Despite consistent revenue and earnings beats, Crocs has now reported multiple quarters of declining year-over-year operating and EBITDA margins.
Analyst consensus estimates point to revenue growth of just 1% annually over the next two years, signaling a sharp slowdown compared to the company’s historical growth rates.
EBITDA is expected to grow at less than 1% annually, while EPS growth is projected at approximately 5.9%, largely driven by cost controls rather than top-line expansion.
This muted growth outlook helps explain why the stock continues to trade at compressed valuation multiples, even after earnings beats.
Based on analysts’ consensus estimates, we assume that Crocs has an estimated fair value of $108 per share based on conservative assumptions. This implies 11.9% total upside over the next 2.9 years, which translates to roughly 4% annualized returns.
While the valuation suggests some upside from current levels, the expected annual returns remain relatively low compared to higher-growth opportunities.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
