Is It Time To Buy Some Crocs For The Summer
Crocs (CROX) is an international supplier of footwear made of a resin made by Croxs called CrocLite. This enables CROX to produce soft, comfortable, lightweight, superior gripping, non marking and odor resistant shoes.In this article I'll briefly mbt uk look back at the 2012 and 2013 results and its balance sheet. Thereafter I'll discuss the outlook for the company for the next few years, which will lead to my investment thesis at the end of this article.The 2012 financial resultsCrocs announced its financial results for 2012 in March of this year, timberland roll top boots revealing a record revenue of $1.12B, up 12.2% from 2011. Net profit came in at $131.3M or $1.44/share, which means Crocs is currently trading at approximately 11X the 2012 earnings, which isn't too expensive.Let's look at some operational ratios now. The net profit margin (net profit/revenue) for FY timberland boots cheap 2012 was , which is a tad higher than the net profit margin of . Later in this article I'll compare the net profit margins from 2010 until Q1 2013 and provide a guesstimate of the future margins based on analyst revenue and profit expectations.The balance sheet at the end of 2012 looked extremely robust casque beats with a working capital in excess of $450M, which is one of the main reasons why I'm extremely interested in this company. I'll provide a more in depth analysis of the balance sheet later in this article.At the presentation of the FY 2012 results, CROX issued a guidance for Q1 2013, stating it expects ecouteur beats an EPS of $0.32 0.34/share on a revenue of $305 310M. Let's now see how the actual results compared to Crocs' estimate.The Q1 2013 financial resultsThe Q1 2013 results were in line with the guidance given by the management at the presentation of the FY 2012 results. Revenue was slightly better than expected casque beats studio as CROX had revenues of $312M versus the expected $305 310M. EPS came in at $0.33/share, which is exactly within the range of $0.32 0.34 the company was aiming for.All in all, this was a good quarter, as the first and fourth quarter are usually the weakest quarters for Crocs because they are heavily casque audio beats depending on seasonal sales. That's why the net profit margin in Q1 came in at only 9.3%, and this number should increase considerably during the summer months.Outlook for 2013Crocs currently doesn't provide a FY 2013 guidance, but updates its investors on a quarterly basis. For Q2 2013, CROX expects casque sans fil to report a net profit per share of between $0.60 and $0.63 on revenues of $360 370M.The analysts expect an EPS of $1.39 for this year and $1.60 for next year meaning CROX is currently trading at 11.4X 2013 earnings and at 9.9X next year's earnings, which is quite cheap for a growth company.