Clarus (CLAR) Q1 Earnings: What To Expect

Outdoor lifestyle and equipment company Clarus (NASDAQ:CLAR). will be reporting results tomorrow afternoon. Here's what to expect.

Clarus missed analysts' revenue expectations by 8.7% last quarter, reporting revenues of $76.5 million, up 3.6% year on year. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and a miss of analysts' operating margin 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 8.2% year on year to $64.53 million, improving from the 38% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 six times over the last two years.

Looking at Clarus's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Brunswick's revenues decreased 21.7% year on year, meeting analysts' expectations, and Harley-Davidson reported a revenue decline of 3.3%, topping estimates by 28.4%. Brunswick traded down 5.8% following the results while Harley-Davidson was also down 11.9%.

Read our full analysis of Brunswick's results here and Harley-Davidson's results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 5.9% on average over the last month. Clarus is up 1.7% during the same time and is heading into earnings with an average analyst price target of $7.3 (compared to the current share price of $6.64).

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