Outdoor lifestyle and equipment company Clarus (NASDAQ: CLAR) will be reporting earnings this Thursday afternoon. Here’s what to expect.
Clarus beat analysts’ revenue expectations last quarter, reporting revenues of $69.35 million, up 3.3% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.
Is Clarus a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Clarus’s revenue to decline 3.5% year on year, improving from the 6.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Clarus has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Clarus’s peers in the consumer discretionary - leisure products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. MasterCraft delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 4.1%, and Latham reported revenues up 14.5%, topping estimates by 4.4%. MasterCraft traded up 8.9% following the results.
Read our full analysis of MasterCraft’s results here and Latham’s results here.
Investors in the consumer discretionary - leisure products segment have had fairly steady hands going into earnings, with share prices down 1.6% on average over the last month. Clarus is down 18.2% during the same time and is heading into earnings with an average analyst price target of $4.10 (compared to the current share price of $3.11).
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