01:05 PM EDT, 08/01/2024 (MT Newswires) -- Crocs ( CROX ) performance looks promising in 2024 after a strong Q2 results and margins exceeding expectations, Wedbush said in a note Thursday.

The company's Q3 outlook below Wall Street estimates could be conservative, Wedbush said. Guidance for 2024 EPS is now $12.45 to $12.90. The brokerage expects Q3 revenue growth between -1.5% and +0.5%, with EPS between $2.95 and $3.10, implying Q4 EPS could be $2.48 to $2.78.

Crocs ( CROX ) grew 11% in Q2 with solid domestic and international performance. Its footwear brand HeyDude saw a 17.5% revenue drop, but its margins improved and the company is projecting a Q4 rebound.

Crocs ( CROX ) paid off $200 million in debt and repurchase 1.2 million shares for around $175 million, which indicates future EPS growth, Wedbush said.

Wedbush has an outperform rating on Crocs ( CROX ) with a 12-month price target of $170.

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