Investment Insights: Post-Earnings Winners Insights into Post-Earnings Performance

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By Ronald Tech

As the Q1 earnings cycle winds down, the tech sector has shone brightly, contributing to an overall positive performance in the S&P 500 companies unveiling their quarterly results.

Among those basking in the afterglow of positive earnings are Crocs (CROX), e.l.f. Beauty (ELF), and Walmart (WMT), each witnessing an uptick in their share prices post-earnings. But what lies beneath the surface of these impressive quarterly reports? Let’s delve deeper.

Crocs Fashionable Again

Crocs has made a stunning comeback, evident in its recent quarterly results. The iconic Crocs brand raked in $732 million in revenue, marking a solid 10% increase from the same period last year. In contrast, HEYDUDE struggled, with sales dropping by 18%.

Noteworthy is the fact that Crocs surpassed the Zacks Consensus EPS estimate by a whopping 34%. The company’s expansion in margins has bolstered profitability, with a Q4 gross margin of 55.3%, up from 52.5% a year earlier.

The market responded positively to the results, with Crocs’ shares soaring post-earnings, showing a remarkable 67% increase in 2024 compared to the S&P 500’s 11.6% gain. Over the past five years, CROX shares have delivered an impressive 46% annualized return.

Walmart’s Exceptional Growth

Walmart, the retail behemoth, exceeded expectations in its latest quarter, beating the Zacks Consensus EPS estimate by 15% and reporting sales 1.3% above forecasts. Earnings witnessed a robust 22% year-over-year growth, while sales surged by 6% from the same period last year.

Analysts have been revising upward their estimates for Walmart’s current fiscal year, projecting a 6% increase to $2.42 per share, implying a 9% year-over-year growth. The stock currently holds a promising Zacks Rank #2 (Buy).

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Additionally, Walmart’s shareholder-friendly approach is evident as it has raised its quarterly dividend five times in the last five years. Presently, the shares yield an attractive 1.3% annually, outstripping the Zacks Retail sector average of 0.9%.

e.l.f. Beauty Shines Bright

e.l.f. Beauty witnessed a surge in its share price post-earnings, breaking a downward trend. With a nearly 30% uptick in 2024, e.l.f. Beauty shares have outperformed the S&P 500 significantly, building on years of strong gains.

The company has consistently outperformed consensus estimates for both earnings and revenue in the last 10 quarters, underscoring its growth trajectory. In its most recent release, e.l.f. Beauty reported a 15% rise in earnings and an impressive 71% surge in sales.

e.l.f. Beauty remains a compelling choice for investors focused on growth, as indicated by its Style Score of ‘B’ for Growth.

Conclusion

The earnings season may be winding down, but the positivity lingers for Crocs, e.l.f. Beauty, and Walmart, all showcasing stellar performances post-results.