Clarus (CLAR) to Report Q4 Earnings: Here's What to Expect
Clarus Corporation CLAR is slated to report fourth-quarter 2023 results on Mar 7, after market close.
In the last reported quarter, the company’s earnings and sales missed the Zacks Consensus Estimate by 42.9% and 1.7%, respectively.
CLAR’s earnings missed expectations in three of the trailing four quarters and met on the remaining occasion, the negative average surprise being 18.4%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter 2023 earnings per share has decreased to 8 cents from 9 cents over the past 30 days. This suggests a 60% year-over-year decline from the reported figure of earnings of 20 cents per share.
Clarus Corporation Price and EPS Surprise
Clarus Corporation price-eps-surprise | Clarus Corporation Quote
The consensus mark for total sales is pegged at $84.5 million, suggesting an 18.9% decline from the year-ago quarter’s value of $104.2 million.
Factors to Note
In the fourth quarter of 2023, the top line of Clarus is expected to have declined year over year due to soft contributions from its Precision Sport and Outdoor segments. The reduced sales trend is likely to have been impacted by lingering weakness at key North American retail accounts, and the European and international markets, along with challenging market conditions. Also, foreign exchange risks are concerns, given the U.S. dollar continues to strengthen against the Australian dollar.
For the to-be-reported quarter, the Zacks Consensus Estimate for sales in the Outdoor and Precision Sport segments is pegged at $51 million and $12.9 million, suggesting a year-over-year decline of 7.3% and 57.4%, respectively.
Nonetheless, an increase in sales in the Adventure segment is likely to have offset the negative impacts of the other two segments to some extent in the fourth quarter. The consensus mark for sales of this segment is pegged at $20.6 million, suggesting 11.4% year-over-year growth.
Meanwhile, the company’s bottom line is likely to have been affected in the to-be-reported quarter due to increased operating expenses and costs related to e-commerce initiatives in the Outdoor segment.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Clarus this time around. The company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: Clarus has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: CLAR currently carries a Zacks Rank of 3.
Key Picks
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.
Netflix, Inc. NFLX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
NFLX has a trailing four-quarter earnings surprise of 5.4%, on average. The stock has increased 38.2% in the past six months. The Zacks Consensus Estimate for NFLX’s 2024 sales and earnings per share (EPS) indicates growth of 14.5% and 41.6%, respectively, from the year-ago levels.
Ralph Lauren Corporation RL sports a Zacks Rank of 1. RL has a trailing four-quarter earnings surprise of 18.7%, on average. The stock has gained 51.5% in the past six months.
The Zacks Consensus Estimate for RL’s fiscal 2025 sales and EPS implies an improvement of 4.2% and 9.5%, respectively, from the year-ago levels.
Adtalem Global Education Inc. ATGE presently sports a Zacks Rank of 1. ATGE has a trailing four-quarter earnings surprise of 16.9%, on average. The stock has increased 11.2% in the past six months.
The Zacks Consensus Estimate for ATGE’s fiscal 2024 sales and EPS suggests growth of 6.4% and 10.2%, respectively, from the year-ago levels.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Ralph Lauren Corporation (RL) : Free Stock Analysis Report
Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report
Clarus Corporation (CLAR) : Free Stock Analysis Report
