Crocs having a block party

While I sat there in the dentist's office enduring a painful, long overdue cleaning, my fellow Crocoholics were having a block party today.

My cleaning began at 10:15 a.m. Hawaii time, before earnings for Crocs Inc. were released. While I suffered, CROX devoured bears with Q2 earnings, routing expectations and raising guidance for the remainder of the year. CROX closed the session up 2.7% to $50.59, but exploded on the news of the earnings report. The stock now trades at $58.35 in extended hours.

Here's the quickie summary from Briefing.com:

4:12PM Crocs beats by $0.14, beats on revs; guides Q3 and Y07 above consensus; stock is halted (CROX) 50.59 +1.34 : Reports Q2 (Jun) earnings of $0.58 per share, $0.14 better than the Reuters Estimates consensus of $0.44; revenues rose 162.0% year/year to $224.3 mln vs the $192.7 mln consensus. Co issues upside guidance for Q3, sees EPS of $0.58-0.62 vs. $0.43 consensus; sees Q3 revs of $240-250 mln vs. $195.87 mln consensus. Co issues upside guidance for FY07, sees EPS of $1.89-1.93 vs. $1.56 consensus; sees FY07 revs of $810-820 mln vs. $712.25 mln consensus.

Also worth noting from the conference call: an apparel line is coming next for Crocs.

The stock halted in after-hours trading upon the conference call. With short interest at 32%, the halt was necessary, no doubt. Trading resumed at around 4:30 p.m. Eastern.

The Co's performance continues to stun shorts and bears who pointed to insider selling by CEO Ron Snyder and his execs during Q2. Rumors of declining sales and a pseudo report two weeks ago about an shut-down kiosk by Jim Cramer may have hurt the stock short term. Shares went on two dips in the past month, first to $40, and later down from $49 to $44.

As it turns out, the 40s are long gone for both longs and shorts. Perhaps the most peculiar indication that the Co would turn out blowout numbers came when the earnings report date was moved from August 2 to July 26 (today). Since that change, the stock propelled upward, but nothing like the action in today's after hours.

With more than 2 hours left in extended trading, there is no ceiling on where the stock may end up. With the market deep in the red today, news of Crocs' continued surge through the stratosphere stands out clearly.

Congratulations to all Crocs longs. My teeth are clean, my feet are happy (thanks to my Crocs Caymans) and it's good to be in the green.

See CROX earnings report at EdgarOnline.

Disclaimer: Pupule Paul is long CROX.