DA Davidson Downgrades Crocs (CROX) to Neutral Following Weak Outlook
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Price: $125.28 +0.89%
Rating Summary:
20 Buy, 12 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
Rating Summary:
20 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
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DA Davidson downgraded shares of Crocs (NASDAQ: CROX) to a Neutral rating from its previous rating of Buy. The firm also slashed its price target on the shares from $40 to $25
The company cut its Q3 outlook from $280 million in revenue and EPS of $0.40 to $273-$275 million in sales and $0.31-$0.33 in EPS. Management reported lower guidance was due to weakness in its direct-to-consumer kiosks and outlet stores located within the Americas region, as well as slowing growth in Europe.
The firm notes that Crocs wholesale numbers remain strong and management plans to expand its translucent, chameleon, and sneaker collections for Spring 2012.
To go inline with the company's new outlook, DA Davidson is cutting its Q3, Q4, and FY11 EPS estimates from $0.41, $0.12, and $1.38 to $0.32, $0.07, and $1.24.
Management also noted that growth in Europe is expected to slow in the fourth quarter. To reflect the slowing growth, the firm reduced its FY12 EPS estimate from $1.65 to $1.46.
For more ratings news on Crocs click here and for the rating history of Crocs click here.
Shares of Crocs closed at $26.64 yesterday.
The company cut its Q3 outlook from $280 million in revenue and EPS of $0.40 to $273-$275 million in sales and $0.31-$0.33 in EPS. Management reported lower guidance was due to weakness in its direct-to-consumer kiosks and outlet stores located within the Americas region, as well as slowing growth in Europe.
The firm notes that Crocs wholesale numbers remain strong and management plans to expand its translucent, chameleon, and sneaker collections for Spring 2012.
To go inline with the company's new outlook, DA Davidson is cutting its Q3, Q4, and FY11 EPS estimates from $0.41, $0.12, and $1.38 to $0.32, $0.07, and $1.24.
Management also noted that growth in Europe is expected to slow in the fourth quarter. To reflect the slowing growth, the firm reduced its FY12 EPS estimate from $1.65 to $1.46.
For more ratings news on Crocs click here and for the rating history of Crocs click here.
Shares of Crocs closed at $26.64 yesterday.
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