Back to top

Image: Bigstock

Clarus (CLAR) to Report Q1 Earnings: What's in the Cards?

Read MoreHide Full Article

Clarus Corporation (CLAR - Free Report) is slated to report first-quarter 2018 results on May 7, after the closing bell.

We expect the company to perform well backed by growing strength in its Black Diamond Equipment brand and increased contribution from the acquisition of Sierra Bullets, L.L.C.

Notably, shares of the company have rallied 29.7% in the past year, significantly outperforming the industry’s 17.4% gain.

Let’s have a look at the factors that are likely to have influenced the company’s first-quarter results.


Factors at Play

In the to-be-reported quarter, sales are anticipated to improve year over year, driven by positive contributions from Sierra Bullets, L.L.C. that Clarus acquired in 2017, as well as strength across ski and climb categories.

The Zacks Consensus Estimate for revenues in the quarter is pegged at $52.6 million. This reflects a year-over-year increase of 26.6% from the year-ago actual figure. In the last reported quarter, sales of $52.7 million improved 27% year over year and the upside trend is likely to have continued in the to-be-reported quarter as well.

As far as adjusted earnings are concerned, the consensus mark is pegged at 16 cents, reflecting a year-over-year increase of 700%. The anticipated rise in the metric is likely to be driven by margin expansion, resulting from the company’s continuous focus on product and channel mix improvement, lower levels of discontinued merchandise, and stabilization of sourcing revenues. In the fourth quarter of 2017, adjusted earnings per share was 15 cents, up from a penny in the fourth quarter of 2016, thereby setting a positive trend.

What Our Model Suggests

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP.  The sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Clarus has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, a combination indicating that the company is unlikely to beat estimates this time around.

Clarus Corporation Price and EPS Surprise

Stocks to Consider

Here are some stocks from the Consumer Discretionary sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat in the to-be-reported quarter:

Earnings ESP for Walt Disney (DIS - Free Report) , Marriott (MAR - Free Report) and Discovery Communications is +1.34%, +0.40%, +0.39%, respectively. Each of these companies carry a Zacks Rank #3 and are scheduled to report quarterly numbers on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marriott International, Inc. (MAR) - free report >>

The Walt Disney Company (DIS) - free report >>

Clarus Corporation (CLAR) - free report >>

Published in