Clarus Earnings: What To Look For From CLAR

Outdoor lifestyle and equipment company Clarus (NASDAQ:CLAR) will be reporting earnings this Thursday after market close. Here’s what to look for.

Clarus missed analysts’ revenue expectations last quarter, reporting revenues of $65.41 million, down 8.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income 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 grow 1.3% year on year, a reversal from the 12.8% decrease it recorded in the same quarter last year.

The majority of analysts covering the company have 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 Q1 results, giving us a hint as to what we can expect. Latham delivered year-on-year revenue growth of 5.3%, missing analysts’ expectations by 1.6%, and Brunswick reported revenues up 12.8%, topping estimates by 4.1%. Brunswick’s stock price was unchanged following the results.

Read our full analysis of Latham’s results here and Brunswick’s results here.

There has been positive sentiment among investors in the consumer discretionary - leisure products segment, with share prices up 6% on average over the last month. Clarus is up 4.4% during the same time and is heading into earnings with an average analyst price target of $3.71 (compared to the current share price of $2.82).

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