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Crocs (NASDAQ:CROX) just delivered a standout earnings report, crushing expectations and sending shares soaring 21.3% at 1.43pm todayits biggest one-day jump in over a year. The company posted full-year EPS growth of 24% to $15.88, with adjusted EPS up 9% to $13.17. Revenue for Q4 hit $990 million, outpacing estimates of $961.6 million, while adjusted EPS of $2.52 easily beat Wall Street's forecast of $2.26. CEO Andrew Rees highlighted the Crocs brand's continued strength and early signs of a turnaround for HEYDUDE, which saw flat sales after five straight quarters of declines.
Despite a cautious Q1 outlookprojecting a 3.5% revenue dipCrocs expects full-year 2025 revenue to grow between 2% and 2.5%, with adjusted EPS guidance of $12.70 to $13.15 slightly ahead of analyst expectations. Investors are betting that the worst is over for HEYDUDE, and analysts see potential upside if the brand can regain momentum. Tom Nikic from Needham maintains a Buy rating with a $129 price target, emphasizing that Crocs' core business remains rock solid. Meanwhile, Bernstein's Ivan Holman pointed out that a beat is a beat, especially in a market worried about growth across the footwear sector.
Adding more fuel to the bull case, Crocs' board just approved a massive $1 billion boost to its stock buyback program, bringing total authorization to $1.3 billion. That's a major vote of confidence from management and a signal that they see the stock as undervalued. With strong cash flow, a disciplined approach to costs, and a clear growth roadmap, Crocs is setting itself up for long-term value creation. Now, the big question is whether HEYDUDE can stage a full comebackif it does, Crocs stock could have even more room to run.
This article first appeared on GuruFocus.