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LOS ANGELES, Oct 31 (Reuters) - Crocs Inc (CROX.O), maker of the clunky but popular plastic shoes, said on Tuesday its quarterly profit more than doubled, but its high-flying stock slipped by more than 24 percent after hours on its disappointing revenue and 2007 outlook.
The Niwot, Colorado-based company, whose vibrantly colored shoes, clogs and boots have become a fad in recent years, raised its 2007 earnings range by almost 3 percent to between $1.94 and $1.98 a share. It increased its revenue forecast by more than 1 percent to between $820 million and $830 million.
Analysts, on average, were expecting earnings of $1.97 a share on revenue of $837 million.
Crocs’ stock shot up as high as $75.21, before closing up $2.66, or 3.7 percent, at $74.75 on Nasdaq. It fell to $56.80 in extended trading after the earnings report, with more than 15.5 million shares changing hands.
“I think the stock has been trading as a momentum stock. What we’re seeing here is a reversal of that momentum,” said Jeff Mintz, vice president of research at Wedbush Morgan Securities Inc. The shares had risen more than 200 percent this year.
The company’s report reflected more seasonality than analysts had expected, but its actual performance did not justify the significant hit Crocs took in after-hours trade, Mintz said.
Crocs shares had also fallen last month on consumer complaints that the company’s signature shoes, originally meant for boating or outdoors, are prone to catch on escalators and have caused injuries.
For the third quarter, Crocs reported net income of $56.5 million, or 66 cents a share, compared with $21.5 million, or 27 cents a share, a year ago. Revenue more than doubled to $256.3 million.
The company said earnings per share were adjusted to reflect a 2-for-1 stock split in June 2007.
Analysts on average had expected earnings of 63 cents a share, before items, on revenue of $259.76 million, according to Reuters Estimates.
Crocs expects 2008 revenue and net income per share to increase between 35 percent to 40 percent over the projected 2007 levels. (Reporting by Purwa Khandelwal in Bangalore and Dana Ford in Los Angeles)