Clarus Corporation CLAR is preparing to unveil its fourth-quarter results for 2023 on Mar 7, post-market closure.
Following a challenging last quarter when the company’s earnings and sales lagged behind the Zacks Consensus Estimate by 42.9% and 1.7% respectively, anticipation for the upcoming report is mixed with caution.
With a history of earnings missing the mark in three out of the last four quarters, investors are holding their breath for what the numbers might reveal this time around.
Forecast Adjustments in Focus
Estimates indicate a downward adjustment in the anticipated earnings per share for the last quarter of 2023, reducing from 9 cents to 8 cents in the last 30 days. This signals a substantial 60% decline compared to the previous year’s 20 cents per share.
Performance Recap and Projections
Market consensus forecasts total sales to reach $84.5 million, reflecting an estimated 18.9% drop from the same period a year ago, where sales stood at $104.2 million.
Insight into Influential Factors
For the final quarter of 2023, Clarus Corporation is expected to report a decline in revenue, largely attributed to sluggish performance in its Precision Sport and Outdoor segments. Weakness in key North American retail accounts, as well as in European and international markets, combined with challenging market conditions, have impacted sales. Additionally, the strengthening of the U.S. dollar against the Australian dollar has added currency risks to the mix.
Forecasts for sales in the Outdoor and Precision Sport segments stand at $51 million and $12.9 million, respectively, indicating declines of 7.3% and 57.4% year over year. However, a surge in sales in the Adventure segment may help mitigate losses, with projections showing a growth rate of 11.4% to $20.6 million.
Operational costs tied to e-commerce ventures in the Outdoor segment are expected to have a negative impact on the company’s bottom line for the last quarter.
Insights from the Zacks Model
The Zacks predictive model does not augur well for Clarus this quarter. Lacking the necessary catalysts of a positive Earnings ESP in tandem with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), the odds of an earnings beat appear slim.
Earnings ESP: Clarus is currently at an Earnings ESP of 0.00%, signaling neutrality in earnings projections. For preemptive insights into stocks poised for surprise performance, you may turn to our Earnings ESP Filter.
Zacks Rank: CLAR maintains a Zacks Rank of 3.
Highlighted Recommendations
For prospective investors seeking alternatives, the Zacks Consumer Discretionary sector boasts some promising contenders.
Netflix, Inc. NFLX holds a Zacks Rank #1 (Strong Buy), showcasing a positive trajectory. With an average earnings surprise of 5.4% over the last four quarters and a recent stock uptick of 38.2%, NFLX seems to be on an upward trajectory.
Ralph Lauren Corporation RL is another strong contender, currently holding a Zacks Rank of 1. Demonstrating consistent earnings surprises and a robust stock performance, with a 51.5% growth in the past six months, RL is a stock to watch.
Adtalem Global Education Inc. ATGE also stands out with a Zacks Rank of 1 and a history of solid earnings surprises. With an 11.2% increase in stock value over the past six months, ATGE presents a compelling option.
For further insights into earnings announcements, refer to the Zacks Earnings Calendar for timely updates.
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