Clarus Corporation CLAR is scheduled to announce its fourth-quarter 2023 results on March 7, post-market closure.
In the prior quarter, the company fell short of the Zacks Consensus Estimate, with both earnings and sales missing by 42.9% and 1.7%, respectively.
CLAR has not met earnings expectations in three out of the last four quarters, with an average negative surprise of 18.4%.
Trends in Estimate Revisions
Over the last 30 days, the Zacks Consensus Estimate for Q4 2023 earnings per share dropped from 9 cents to 8 cents, indicating a 60% year-over-year decrease.
Clarus Corporation Price and EPS Performance
Clarus Corporation price-eps-surprise | Clarus Corporation Quote
The consensus sales forecast is $84.5 million, indicating an 18.9% decline compared to the same quarter last year.
Factors to Consider
In Q4 2023, Clarus is expected to experience a drop in revenues due to lackluster performance in its Precision Sport and Outdoor segments. Sales might have been hampered by weak North American retail accounts, challenging market conditions, and unfavorable currency exchange rates, especially with the strengthening of the U.S. dollar against other currencies.
Forecasts for segment sales put Outdoor at $51 million, Precision Sport at $12.9 million, and Adventure at $20.6 million, showing mixed results.
However, an uptick in Adventure segment sales could partially offset declines in other divisions. Operating expenses and e-commerce investments in the Outdoor segment might weigh on the company’s bottom line.
Insights from Zacks Model
Zacks’ model does not predict an earnings beat for Clarus this reporting cycle, primarily due to the absence of a positive Earnings ESP and a Zacks Rank of #1, #2, or #3 needed for a heightened chance of surpassing estimates.
Earnings ESP: Clarus currently holds an Earnings ESP of 0.00%. For the best stock predictions before release, check out our Earnings ESP Filter.
Zacks Rank: CLAR maintains a Zacks Rank of 3.
Selected Stock Picks
For more promising alternatives, consider these well-ranked choices from the Zacks Consumer Discretionary sector.
Netflix, Inc. NFLX boasts a Zacks Rank #1 (Strong Buy) and has displayed positive earnings momentum. The Zacks Consensus Estimate indicates robust growth for 2024.
Ralph Lauren Corporation RL also holds a Zacks Rank of 1, with optimistic sales and earnings projections for fiscal 2025.
Adtalem Global Education Inc. ATGE, ranked #1, shows favorable metrics for fiscal 2024 sales and EPS.
Keep informed about upcoming earnings releases with the Zacks Earnings Calendar.
