Stock Story -
Outdoor lifestyle and equipment company Clarus (NASDAQ:CLAR) will be reporting earnings tomorrow after market hours. Here's what to look for.
Clarus beat analysts' revenue expectations by 7.4% last quarter, reporting revenues of $69.31 million, down 1.4% year on year. It was a mixed quarter for the company, with a miss of analysts' earnings estimates.
Is Clarus a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Clarus's revenue to grow 2.4% year on year to $59.34 million, a reversal from the 49.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0 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 Q2 results, giving us a hint as to what we can expect. Harley-Davidson delivered year-on-year revenue growth of 12%, beating analysts' expectations by 27.2%, and Brunswick reported a revenue decline of 15.2%, falling short of estimates by 6.9%. Harley-Davidson traded up 8.7% following the results while Brunswick was also up 8.8%.
Read the full analysis of Harley-Davidson's and Brunswick's results on StockStory.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 11.8% on average over the last month. Clarus is down 7.1% during the same time and is heading into earnings with an average analyst price target of $6.8 (compared to the current share price of $5.9).
