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Clarus (CLAR) Q4 Earnings & Revenues Top Estimates, Stock Up

Clarus Corporation CLAR reported fourth-quarter 2022 financial numbers, with earnings and revenues beating the Zacks Consensus Estimate. Earnings surpassed the consensus estimate after missing in the preceding quarter, while revenues beat the estimate for the seventh consecutive quarter. Following the results, the company’s shares increased 11.1% in the after-hours trading session on Mar 7.

Clarus president John Walbrecht, stated, “Our record setting fourth quarter performance is yet another indication that our ‘Innovate and Accelerate’ strategy is delivering the intended results across our ‘Super Fan’ brand portfolio.”

The company reported adjusted earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 38 cents by 18.4%. In the prior year, the company had reported adjusted earnings per share (EPS) of 34 cents.

Revenues of $118.2 million beat the consensus mark of $107 million. The top line increased 56% year over year. This uptick can be attributed to strong sales performance in the Outdoor segment and Precision Sport. Revenue gains in the quarter also include a contribution of nearly $23.8 million from Rhino-Rack, an acquisition completed on July 1, 2021, and $1.7 million from the MAXTRAX acquisition — completed on Dec 1, 2021.

Sales in the Outdoor segment came in at $65.1 million, up 17%. Precision Sport sales increased 37% year over year to $27.6 million.

Clarus Corporation Price, Consensus and EPS Surprise

Clarus Corporation price-consensus-eps-surprise-chart | Clarus Corporation Quote

Operating Highlights

In the reported quarter, gross margin was 36.1%, up 60 basis points (bps) from the prior-year quarter’s levels. Adjusted EBITDA came in at $20 million compared with $11 million reported in the prior-year quarter.

Balance Sheet

As of Dec 31, 2021, cash and cash equivalents amounted to $19.5 million compared with $17.8 million as of Dec 31, 2020. Long-term debt as of Dec 31 amounted to $141.5 million, up from $34.6 million at the end of 2020.

2022 Outlook

The company provided its 2022 outlook. Clarus now expects 2022 sales to rise approximately 25% to $470 million from 2021 levels. The company anticipates sales for Outdoor to rise high-single digits to nearly $237.5 million. Precision Sport segment sales are expected to increase low-single digits to roughly $112.5 million. Adventure segment sales are likely to be approximately $120 million.

Adjusted EBITDA for 2022 is projected to be about $78 million. The company expects capital expenditures to be around $9 million. Free cash flow is projected in the range of $50.0-$60.0 million.

Zacks Rank & Key Picks

Clarus currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Consumer Discretionary sector are Crocs, Inc. CROX, Cedar Fair, L.P. FUN and Ralph Lauren Corporation RL.

Crocs flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 36%, on average. Shares of Crocs have decreased by 12.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 48.6% and 22.1%, respectively, from the year-ago period’s levels.

Cedar Fair sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 16.3%, on average. Shares of Cedar Fair have gained 3.1% in the past year.

The Zacks Consensus Estimate for FUN’s 2022 sales and EPS suggests growth of 32.6% and 612.7%, respectively, from the year-ago period’s levels.

Ralph Lauren flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 94.1%, on average. Shares of Ralph Lauren have decreased 17% in the past year.

The Zacks Consensus Estimate for RL’s 2022 sales and EPS suggests growth of 40% and 380.6%, respectively, from the year-ago period’s levels.

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