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Clarus (CLAR) to Report Q4 Earnings: What's in the Cards?

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Clarus Corporation (CLAR - Free Report) is likely to witness improvement in the bottom line when it reports fourth-quarter 2019 results on Mar 9, 2020. In the last reported quarter, the company posted a negative earnings surprise of 22.7%.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 18 cents. In the year-ago quarter, the company had reported earnings of 17 cents per share. However, in the past 30 days, the company’s earnings estimates have moved south by a couple of cents.

For quarterly revenues, the consensus mark is pegged at nearly $59.8 million. The projected figure suggests a 4.3% rise from the prior-year quarter’s levels.

Let’s discuss the factors that are likely to get reflected in Clarus’ fourth-quarter 2019 performance.

Clarus Corporation Price and EPS Surprise

 

Clarus Corporation Price and EPS Surprise

Clarus Corporation price-eps-surprise | Clarus Corporation Quote

 

Factors at Play

Solid Sales in domestic and international segments are likely to have had a positive impact on the company’s fourth-quarter performance. Further, the consensus mark for revenues in the domestic and international segments is at $33.9 million and $25.7 million, that indicates growth of 3.4% and 5.3%, respectively, from the year-ago quarter’s figures. Moreover, product innovation and forging into new, long-term revenue markets are likely to have benefited the top line in the fourth quarter. However, softness in bullet and ammunition market is a concern.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Clarus this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is not the case here, as you will see below.

Earnings ESP: 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.

Zacks Rank: Clarus has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combinations

Here are some companies that investors may consider as our model shows that these have the right combination of elements to beat earnings this season:

Lululemon Athletica Inc. (LULU - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank #2.

G-III Apparel Group, LTD. (GIII - Free Report) has an Earnings ESP of +2.71% and a Zacks Rank #2.

Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +0.55% and a Zacks Rank #3.

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