CROX Stock Steps Up After Earnings Win

The firm expects second-quarter revenue to come in higher than anticipated, too

Deputy Editor
May 7, 2019 at 9:33 AM
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The shares of Crocs Inc (NASDAQ:CROX) are popping in early trading, after the firm posted first-quarter earnings of 33 cents per share on $295.9 million in revenue -- both topping analysts' estimates. CROX cited strong e-commerce and wholesale revenue, and said its same-store sales were up 8.7% for the first part of the year. The shoe maker expects second-quarter revenue to arrive above expectations. Crocs stock is up 9% at $30.74 at last check. 

CROX stock has enjoyed a successful rebound off its early March lows, with recent support atop its 20-day and 120-day moving averages. Plus, today's surge has the equity back atop $29 --- home to its pre-bear gap levels from February, and an area the stock briefly touched last Friday before pulling back ahead of earnings. The equity is now up roughly 93% since this time last year. 

There's plenty of room for analyst upgrades, too, with only two "strong buy" ratings on the table, compared to three tepid "holds." Plus, the consensus 12-month target price is only a chip-shot away from current levels at $31.33. 

Short sellers could be fretting over Crocs' good day, with short interest up 2.4% in the last reporting period. The 4.88 million shares sold short represents a healthy 9% of the stock's available float. At CROX's average pace of trading, it would take almost a week to cover all these pessimistic positions, leaving the door wide open for a short squeeze.

Options traders, on the other hand, have leaned toward optimism. The security sports a 50-day call/put volume ratio of 3.05 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 99th annual percentile, hinting at an unusually healthy appetite for bullish bets of late. 


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