Crocs (CROX) will lower its 2025 guidance significantly as a consequence of the looming US tariffs on Chinese goods when it reports Q1 results on May 8, but investors expectations are still unclear, UBS said in a note Thursday.
The company is likely to report inline Q1 earnings per share, but it faces a wide range of potential effects resulting from President Donald Trump's tariffs, analysts at UBS said. The share price is expected to move 9.7% either way when Crocs reports the results, compared to historical 10.3% fluctuation.
Investor sentiment already appears to be falling, with short interest rising 310 basis points and share price dropping 13% over the past three months, outpacing 11% decline for the S&P 500.
Based on recent conversations with investors, the consensus is for a $0.30 to $0.60 cut in EPS for 2025.
UBS has a neutral rating and a $100 price target for Crocs, with the price target reflecting a multiple of roughly 10 times projected fiscal 2027 EPS, largely keeping its valuation inline with Crocs' peers.
Price: 90.53, Change: +1.86, Percent Change: +2.10
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.