Author: Zacks Equity Research

BHLB – Berkshire Hills Bancorp (BHLB) Q1 Earnings and Revenues Top Estimates

Written by Zacks Equity Research on . Posted in BHLB, Stock Report.

Berkshire Hills Bancorp (BHLB – Free Report) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 36.84%. A quarter ago, it was expected that this bank holding company would post earnings of $0.15 per share when it actually produced earnings of $0.38, delivering a surprise of 153.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Berkshire Hills, which belongs to the Zacks Financial – Savings and Loan industry, posted revenues of $101.29 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 6.34%. This compares to year-ago revenues of $92.06 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Berkshire Hills shares have added about 31% since the beginning of the year versus the S&P 500’s gain of 11.5%.

What’s Next for Berkshire Hills?

While Berkshire Hills has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Berkshire Hills was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $92.75 million in revenues for the coming quarter and $0.93 on $372.75 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial – Savings and Loan is currently in the top 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

CCS – Century Communities (CCS) Beats Q1 Earnings and Revenue Estimates

Written by Zacks Equity Research on . Posted in CCS, Stock Report.

Century Communities (CCS – Free Report) came out with quarterly earnings of $3 per share, beating the Zacks Consensus Estimate of $1.52 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 97.37%. A quarter ago, it was expected that this single-family homebuilder would post earnings of $1.75 per share when it actually produced earnings of $2.75, delivering a surprise of 57.14%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Century Communities, which belongs to the Zacks Building Products – Home Builders industry, posted revenues of $1.01 billion for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 26.71%. This compares to year-ago revenues of $602.61 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Century Communities shares have added about 50.7% since the beginning of the year versus the S&P 500’s gain of 11.5%.

What’s Next for Century Communities?

While Century Communities has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Century Communities was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.90 on $857.43 million in revenues for the coming quarter and $8.32 on $3.72 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products – Home Builders is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

CNMD – Conmed (CNMD) Tops Q1 Earnings and Revenue Estimates

Written by Zacks Equity Research on . Posted in CNMD, Stock Report.

Conmed (CNMD – Free Report) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 46.51%. A quarter ago, it was expected that this medical technology company would post earnings of $0.78 per share when it actually produced earnings of $0.84, delivering a surprise of 7.69%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Conmed, which belongs to the Zacks Medical – Dental Supplies industry, posted revenues of $232.68 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 7.01%. This compares to year-ago revenues of $214.01 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Conmed shares have added about 21.1% since the beginning of the year versus the S&P 500’s gain of 11.5%.

What’s Next for Conmed?

While Conmed has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Conmed was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.61 on $246.11 million in revenues for the coming quarter and $2.95 on $999.35 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical – Dental Supplies is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

GRUB – GrubHub (GRUB) Reports Q1 Loss, Tops Revenue Estimates

Written by Zacks Equity Research on . Posted in GRUB, Stock Report.

GrubHub (GRUB – Free Report) came out with a quarterly loss of $0.56 per share versus the Zacks Consensus Estimate of $0.03. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -1,966.67%. A quarter ago, it was expected that this online food ordering service would post earnings of $0.05 per share when it actually produced a loss of $0.41, delivering a surprise of -920%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

GrubHub, which belongs to the Zacks Internet – Delivery Services industry, posted revenues of $550.59 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 6.31%. This compares to year-ago revenues of $362.98 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

GrubHub shares have lost about 5.7% since the beginning of the year versus the S&P 500’s gain of 11.5%.

What’s Next for GrubHub?

While GrubHub has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for GrubHub was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $519.54 million in revenues for the coming quarter and $0.40 on $2.2 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet – Delivery Services is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

HT – Hersha Hospitality (HT) Reports Q1 Loss, Tops Revenue Estimates

Written by Zacks Equity Research on . Posted in HT, Stock Report.

Hersha Hospitality (HT – Free Report) came out with a quarterly loss of $0.36 per share versus the Zacks Consensus Estimate of a loss of $0.48. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of 25%. A quarter ago, it was expected that this hotel real estate investment trust would post a loss of $0.39 per share when it actually produced a loss of $0.23, delivering a surprise of 41.03%.

Over the last four quarters, the company has surpassed consensus FFO estimates two times.

Hersha Hospitality, which belongs to the Zacks REIT and Equity Trust – Other industry, posted revenues of $47.17 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 4.72%. This compares to year-ago revenues of $90.14 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management’s commentary on the earnings call.

Hersha Hospitality shares have added about 36% since the beginning of the year versus the S&P 500’s gain of 11.5%.

What’s Next for Hersha Hospitality?

While Hersha Hospitality has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Hersha Hospitality was unfavorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is -$0.28 on $63.34 million in revenues for the coming quarter and -$0.81 on $275.8 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust – Other is currently in the bottom 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

MUSA – Murphy USA (MUSA) Surpasses Q1 Earnings and Revenue Estimates

Written by Zacks Equity Research on . Posted in MUSA, Stock Report.

Murphy USA (MUSA – Free Report) came out with quarterly earnings of $2.01 per share, beating the Zacks Consensus Estimate of $1.53 per share. This compares to earnings of $2.92 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 31.37%. A quarter ago, it was expected that this gasoline station operator would post earnings of $2.16 per share when it actually produced earnings of $2.16, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Murphy USA, which belongs to the Zacks Oil and Gas – Refining and Marketing industry, posted revenues of $3.54 billion for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 2.44%. This compares to year-ago revenues of $3.18 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Murphy USA shares have added about 9.1% since the beginning of the year versus the S&P 500’s gain of 11.5%.

What’s Next for Murphy USA?

While Murphy USA has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Murphy USA was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.38 on $3.87 billion in revenues for the coming quarter and $7.77 on $14.88 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas – Refining and Marketing is currently in the top 46% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

PI – Impinj (PI) Tops Q1 Earnings and Revenue Estimates

Written by Zacks Equity Research on . Posted in PI, Stock Report.

Impinj (PI – Free Report) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.12 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 108.33%. A quarter ago, it was expected that this provider of radio frequency identification products would post a loss of $0.20 per share when it actually produced a loss of $0.15, delivering a surprise of 25%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Impinj, which belongs to the Zacks Electronics – Semiconductors industry, posted revenues of $45.25 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 7.73%. This compares to year-ago revenues of $47.82 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Impinj shares have added about 35.7% since the beginning of the year versus the S&P 500’s gain of 11.5%.

What’s Next for Impinj?

While Impinj has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Impinj was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.06 on $42.95 million in revenues for the coming quarter and -$0.27 on $174.87 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics – Semiconductors is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

WERN – Werner Enterprises (WERN) Tops Q1 Earnings and Revenue Estimates

Written by Zacks Equity Research on . Posted in Stock Report, WERN.

Werner Enterprises (WERN – Free Report) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.40 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 7.94%. A quarter ago, it was expected that this transportation company would post earnings of $0.78 per share when it actually produced earnings of $0.89, delivering a surprise of 14.10%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Werner, which belongs to the Zacks Transportation – Truck industry, posted revenues of $616.45 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 0.05%. This compares to year-ago revenues of $592.7 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Werner shares have added about 13.6% since the beginning of the year versus the S&P 500’s gain of 11.5%.

What’s Next for Werner?

While Werner has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Werner was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.79 on $621.64 million in revenues for the coming quarter and $3.17 on $2.55 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation – Truck is currently in the top 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

INOV – Inovalon Holdings (INOV) Q1 Earnings and Revenues Beat Estimates

Written by Zacks Equity Research on . Posted in INOV, Stock Report.

Inovalon Holdings (INOV – Free Report) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 21.43%. A quarter ago, it was expected that this health technology company would post earnings of $0.19 per share when it actually produced earnings of $0.21, delivering a surprise of 10.53%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Inovalon Holdings, which belongs to the Zacks Computers – IT Services industry, posted revenues of $177.18 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 2.12%. This compares to year-ago revenues of $154.19 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Inovalon Holdings shares have added about 63.2% since the beginning of the year versus the S&P 500’s gain of 11.5%.

What’s Next for Inovalon Holdings?

While Inovalon Holdings has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Inovalon Holdings was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $182.65 million in revenues for the coming quarter and $0.74 on $752.72 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers – IT Services is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

CROX – Crocs (CROX) Surpasses Q1 Earnings and Revenue Estimates

Written by Zacks Equity Research on . Posted in CROX, Stock Report.

Crocs, Inc. (CROX – Free Report) reported better-than-expected first-quarter 2021 results, wherein both top and bottom lines increased year over year. Despite a tough retail environment due to the COVID-19 pandemic, solid demand for its products along with growth across all regions and all channels contributed to quarterly growth. Encouragingly, management lifted its 2021 view and also issued guidance for the second quarter of 2021.

Driven by solid results, shares of Crocs jumped more than 15% on Apr 27. Notably, shares of this Zacks Rank #2 (Buy) company have soared 39% in the past three months, outperforming the industry’s growth of 16.1%.

Q1 Highlights

Crocs’ adjusted earnings came in at $1.49 per share during first-quarter 2021, surpassing the Zacks Consensus Estimate of 88 cents. Moreover, the figure surged significantly from 22 cents in the year-ago quarter.

Revenues increased 63.6% (60.5% at constant currency) to $460.1 million in the reported quarter and exceeded the Zacks Consensus Estimate of $415 million. Wholesale and retail revenues improved 50.1% and 93.3% year over year, respectively.

Solid performance in all regions along with healthy demand in its key products, including Clogs, Sandals and Jibbitz, drove the top line. Apart from these, e-commerce grew 75.3% year over year in the quarter under review, marking the 16th successive quarter of double-digit growth.

The company’s adjusted gross profit advanced 88.2% to $254.2 million. Moreover, adjusted gross margin expanded 720 basis points (bps) to 55.2% on the back of a favorable product mix and supply-chain efficiencies along with fewer promotional activities and discounts. However, currency headwinds of roughly 100 bps hurt the gross margin.

Also, adjusted SG&A expenses grew 18.2% to $128.5 million in the first quarter. Meanwhile, adjusted SG&A, as a percentage of sales, contracted 1,080 bps to 27.9%.

Adjusted operating income came in at $125.7 million, up from $26.4 million in the last-year quarter. Moreover, adjusted operating margin expanded to 27.3% from the prior-year quarter’s 9.4%. The uptick can be attributable to lower SG&A costs, robust sales and improved gross margins.

Segments at a Glance

Total revenues in the Americas region were up 87.1% (87.5% at constant currency) to $276.4 million in the first quarter. Also, revenues in the EMEA region came in at $101.1 million, increasing 48.8% (41% at constant currency) year over year. The Asia-Pacific region witnessed revenue growth of 26.2% (20.1% at constant currency) to $82.6 million.

Financial Details

Crocs ended the quarter with a cash balance of $255.9 million. The company generated $30.2 million in cash from operating activities. Further, it incurred capital expenditures of $8 million and the metric is expected to be $100-$130 million in 2021.

Further, it repurchased 0.6 million shares worth $50 million under its $1-billion share repurchase plan. As of Mar 31, 2021, management has $287.8 million remaining under its existing share repurchase program.

The company issued $350.0 million of 4.250% senior notes due 2029. Part of these proceeds were utilized to repay the balance of its senior revolving credit facility. This brings the liquidity level to $499.7 million, which is likely to help the company stay afloat amid this pandemic.

Outlook

Driven by solid first-quarter results, management raised its 2021 guidance. It now expects revenue growth of 40-50%, up from the earlier guided view of 20-25% growth. Moreover, the adjusted operating margin is now anticipated to be 22-24%, which suggests an improvement from the prior view of 18-19%. Also, $12-$15 million of distribution center investments are likely to affect the gross margin.

For second-quarter 2021, revenues are expected to grow 60-70%, which is significantly higher than the estimated growth of 40.4%, suggested by the Zacks Consensus Estimate. Further, gross margin is likely to be negatively impacted by a $3-million investment related to distribution centers. Also, the adjusted operating margin is projected to be 21-23%

Crocs, Inc. Price, Consensus and EPS Surprise

3 Other Stocks to Consider

G-III Apparel Group (GIII – Free Report) currently has an impressive long-term earnings growth rate of 11.6% and a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gildan Activewear (GIL – Free Report) has a long-term earnings growth rate of 9%. The company flaunts a Zacks Rank #1.

Ralph Lauren Corp. (RL – Free Report) has a Zacks Rank #2 and long-term earnings growth rate of 8.2%.

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