Clarus Corporation CLAR reported fourth-quarter fiscal 2019 financial numbers, with earnings and revenues beating the Zacks Consensus Estimate. Following this release, the company’s shares increased nearly 7% in after-hours trading on Mar 9.
The company reported adjusted earnings of 20 cents per share, which beat the Zacks Consensus Estimate of 18 cents by 11.1%. Moreover, the bottom line increased 17.6% from the year-ago quarter’s reported figure of 17 cents by 17.6%.
Revenues of $61 million beat the consensus mark of $60 million by 2.1%. Moreover, the top line increased 6.5% year over year. This uptick can be attributed to strong sales performance from Black Diamond across all regions and product categories.
Clarus Corporation Price, Consensus and EPS Surprise
Clarus Corporation price-consensus-eps-surprise-chart | Clarus Corporation Quote
In the reported quarter, gross margin was 35.5%, down 10 basis points (bps) from the prior-year quarter’s levels. Adjusted EBITDA came in at $7 million compared with $6.6 million reported in the prior-year quarter.
As of Dec 31, 2019, cash and cash equivalents amounted to $1.7 million compared with $2.5 million as of Dec 31, 2018. Inventory increased to $73.4 million from $64.9 million at 2018 end. Long-term debt as of Dec 31 amounted to $22.7 million, up from $22.1 million at the end of 2018.
Net sales amounted to $229.4 million, up 8% year over year.
Adjusted loss per share for the year ended Dec 31, 2019 was reported at 69 cents compared with 64 cents in 2018.
Adjusted EBITDA for the full year was $22.7 million compared with $20.8 million in 2018.
Clarus expects fiscal 2020 sales to rise approximately 6% to $244 million from 2019 levels. The company expects sales for Black Diamond to increase high???single digits with Sierra being down low???single digits compared with 2019 figures.
Adjusted EBITDA for 2020 is likely to increase approximately 6% to $24 million from capital expenditures of approximately $5 million and free cash flow of approximately $10 million in 2019.
Zacks Rank and Key Picks
Clarus currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same space are Vista Outdoor Inc. VSTO, YETI Holdings, Inc. YETI and Brunswick Corporation BC. Vista Outdoor and YETI Holdings sport a Zacks Rank #1, while Brunswick Corporation carries a Zacks Rank #2 (Buy).
Vista Outdoor 2020 earnings are expected to surge 42.9%.
YETI Holdings has a three-five year expected EPS growth rate of 20%.
Brunswick 2020 earnings are expected to surge 21.9%.
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