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Clarus (CLAR) Q4 Earnings & Revenues Lag Estimates, Stock Down

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Clarus Corporation (CLAR - Free Report) reported fourth-quarter 2023 financial numbers, with the top and bottom lines missing the Zacks Consensus Estimate. The bottom line missed the consensus estimate for the third consecutive quarter. Following the results, the company’s shares lost 2.3% in the after-hours trading session on Mar 7.

Warren Kanders, Clarus’ executive chairman, said despite facing significant macroeconomic challenges in 2023 that negatively affected consumer interest, the company had implemented crucial measures to adjust its brands and inventory, aiming to position Clarus for sustained profitable growth as a dedicated, environmentally and socially responsible outdoor enterprise.

Clarus Corporation Price, Consensus and EPS Surprise

Clarus Corporation Price, Consensus and EPS Surprise

Clarus Corporation price-consensus-eps-surprise-chart | Clarus Corporation Quote

CLAR reported an adjusted loss of 7 cents per share, which missed the Zacks Consensus Estimate of earnings of 5 cents. In the prior year, it reported adjusted earnings per share of 11 cents.

Revenues of $76.5 million missed the consensus mark of $84 million. However, the top line increased 3.6% year over year. This improvement was fueled by robust performance in the Adventure segment, attributed to successful engagements with OEM customers. This was somewhat counterbalanced by weaker performance in the European market within the Outdoor segment.

Sales in the Adventure segment came in at $26.4 million, up 43% year over year. Outdoor segment sales declined 9.4% year over year to $50.1 million.

Operating Highlights

In the reported quarter, gross margin was 28.9%, down 830 basis points from the prior-year levels. Adjusted EBITDA was ($3.5) million against $3.6 million a year ago.

Balance Sheet

As of Dec 31, 2023, cash and cash equivalents amounted to $11.3 million compared with $12 million as of Dec 31, 2022. As of Dec 31, long-term debt amounted to $119.8 million, down from $119.9 million at the end of 2022.

2024 Outlook

The company provided its 2024 outlook. Clarus expects sales in the range of $270-$280 million. Adjusted EBITDA is projected in the $18-$20 million band. Management forecasts capital expenditures to be between $4 million and $5 million.

Zacks Rank

Clarus currently carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Consumer Discretionary Releases

Hyatt Hotels Corporation (H - Free Report) delivered decent fourth-quarter 2023 results, with earnings topping the Zacks Consensus Estimate but declining on a year-over-year basis. H's revenues surpassed the consensus mark and increased year over year.

Hyatt’s quarterly results reflected year-over-year growth in comparable system-wide revenue per available room, driven by an increase in occupancy and average daily rate. The uptrend is mainly driven by strong global travel demand, especially among leisure and business guests, and group customers. However, increased costs and expenses, and foreign currency risks partially offset the aforementioned tailwinds and hurt the bottom line.

Planet Fitness, Inc. (PLNT - Free Report) reported fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Also, both metrics increased on a year-over-year basis.

However, management cited concerns about continued macroeconomic uncertainty and a slowing down of sales (owing to a transition toward more strength equipment over cardio). PLNT anticipates 2024 sales distribution to resemble that of 2023, suggesting a return to a standard quarterly rhythm.

Live Nation Entertainment, Inc. (LYV - Free Report) reported mixed fourth-quarter 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Revenues surpassed the consensus estimate for the seventh straight quarter.

LYV has been benefiting from pent-up demand for live events and robust ticket sales. It continues to benefit from the robust performance of Ticketmaster and an increase in fan spending. In 2023, 145 million fans attended more than 50,000 events.

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