Outdoor lifestyle and equipment company Clarus (NASDAQ: CLAR) will be announcing earnings results this Thursday afternoon. Here’s what to expect.
Clarus beat analysts’ revenue expectations by 7.5% last quarter, reporting revenues of $60.43 million, down 12.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is Clarus a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Clarus’s revenue to decline 5.5% year on year to $53.38 million, a further deceleration from the 2.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.
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 five times over the last two years.
Looking at Clarus’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Polaris’s revenues decreased 5.6% year on year, beating analysts’ expectations by 9.2%, and Brunswick reported flat revenue, topping estimates by 16.4%. Polaris traded up 17% following the results while Brunswick was down 6%.
Read our full analysis of Polaris’s results here and Brunswick’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 7.5% on average over the last month. Clarus is up 9.2% during the same time and is heading into earnings with an average analyst price target of $4.36 (compared to the current share price of $3.79).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
