Outdoor lifestyle and equipment company Clarus (NASDAQ: CLAR) will be reporting results tomorrow after market hours. Here’s what to look for.
Clarus beat analysts’ revenue expectations last quarter, reporting revenues of $61.94 million, up 2.5% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
Is Clarus a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Clarus’s revenue to decline 3.4% year on year, a further deceleration from the 2.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Clarus has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Clarus’s peers in the consumer discretionary - leisure products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Ruger delivered year-on-year revenue growth of 19.3%, beating analysts’ expectations by 23%, and Harley-Davidson reported a revenue decline of 5.9%, topping estimates by 5.4%. Ruger traded up 3.3% following the results while Harley-Davidson was down 7.7%.
Read our full analysis of Ruger’s results here and Harley-Davidson’s results here.
Investors in the consumer discretionary - leisure products segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Clarus is up 5.5% during the same time and is heading into earnings with an average analyst price target of $3.34 (compared to the current share price of $3.36).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
