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What to Expect From Clarus (CLAR) This Earnings Season?

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Clarus Corporation (CLAR - Free Report) is slated to report fourth-quarter 2017 results on Mar 12, 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 recently acquired Sierra Bullets, L.L.C.

Notably, shares of the company have rallied 29.2% in a year, significantly outperforming the industry’s 16.3% gain.

 

Ski and Climb Categories Likely to Boost Growth

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 August 2017 as well as strength across ski and climb categories.

The Zacks Consensus Estimate for revenues in the quarter is pegged at $49 million. This when compared with the year-ago quarter’s actual figure, reflects a year-over-year increase of 19.5%. In the previous quarter, sales of $46 million improved 16% year over year.

Clarus Corporation Revenue (TTM)

 

Margin Expansion to Aid Earnings Growth

As far as adjusted earnings are concerned, the consensus mark is pegged at 18 cents, reflecting a year- over-year increase of more than 100%. 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.

Last quarter, adjusted earnings per share of 10 cents were up 66.7% year over year.

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 #3 and an Earnings ESP of 0.00%, a combination indicating that the company is unlikely to beat estimates this time around.

Stocks to Consider

Here are a few stocks, which according to our model possess the right combination of elements to post an earnings beat.

Brunswick Corporation (BC - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

BJ’s Restaurants (BJRI - Free Report) has an Earnings ESP of +1.53% and a Zacks Rank of 2.

Chuy's Holdings (CHUY - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #3.

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