Clarus to Post Q4 Earnings: What's in Store for the Stock?

Clarus Corporation CLAR is scheduled to report fourth-quarter 2024 results on March 6.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, CLAR registered a negative earnings surprise of 16.7%.Trend in Estimate Revision of CLARThe Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at 7 cents, indicating an improvement of 200% from a loss of 7 cents reported in the year-ago quarter.Clarus Corporation Price and EPS Surprise Clarus Corporation price-eps-surprise | Clarus Corporation QuoteFor revenues, the consensus mark is pegged at $69.3 million. The projection suggests a 9.4% fall from the year-ago quarter’s reported figure.Let's take a look at how things have shaped up in the quarter.Factors Likely to Shape Clarus’ Quarterly ResultsClarus’ fourth-quarter performance is likely to have benefited from its focus on product simplification, cost efficiencies and strategic investments. Clarus’ digital and direct-to-consumer strategies may have played a role in supporting sales. Enhancements to its e-commerce platforms and new product launches — such as the Recon platform — are expected to have contributed to customer engagement. Additionally, the company’s focus on expanding partnerships in key international markets may have provided incremental growth opportunities. Clarus expects fourth-quarter revenues to be approximately $70 million.The company’s emphasis on high-margin “A-style” products is expected to have supported profitability in the fourth quarter. By streamlining its product portfolio and exiting low-margin categories, Clarus is likely to have enhanced its gross margins while improving inventory turnover in the fourth quarter.Operational improvements and restructuring efforts within the Adventure segment are expected to have driven cost efficiencies in the to-be-reported quarter. The company implemented structural changes aimed at optimizing its global supply chain and reducing redundancies. These actions are likely to have yielded savings, driving the bottom line in the fourth quarter. The company expects fourth quarter adjusted EBITDA to be in the range of $5 million and $7 million.Clarus continues to navigate a challenging macroeconomic environment. Persistent headwinds in consumer spending, particularly within the outdoor retail sector, may have impacted overall demand. Additionally, supply chain disruptions and softer vehicle sales in Australia could have negatively impacted the company’s fourth-quarter performance.What Our Model Says About CLAR StockOur proven model does not conclusively predict an earnings beat for Clarus this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.Earnings ESP for CLAR: Clarus has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Clarus’ Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Recent Consumer Discretionary ReleasesHilton Worldwide Holdings Inc. 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(MAT): Free Stock Analysis Report Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report Clarus Corporation (CLAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks