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Clarus to Post Q4 Earnings: What's in Store for the Stock?

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Clarus Corporation (CLAR - Free Report) is scheduled to report fourth-quarter 2024 results on March 6.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the last reported quarter, CLAR registered a negative earnings surprise of 16.7%.

Trend in Estimate Revision of CLAR

The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at 7 cents, indicating an improvement of 200% from a loss of 7 cents reported in the year-ago quarter.

Clarus Corporation Price and EPS Surprise

Clarus Corporation Price and EPS Surprise

Clarus Corporation price-eps-surprise | Clarus Corporation Quote

For revenues, the consensus mark is pegged at $69.3 million. The projection suggests a 9.4% fall from the year-ago quarter’s reported figure.

Let's take a look at how things have shaped up in the quarter.

Factors Likely to Shape Clarus’ Quarterly Results

Clarus’ fourth-quarter performance is likely to have benefited from its focus on product simplification, cost efficiencies and strategic investments.
 
Clarus’ digital and direct-to-consumer strategies may have played a role in supporting sales. Enhancements to its e-commerce platforms and new product launches — such as the Recon platform — are expected to have contributed to customer engagement. Additionally, the company’s focus on expanding partnerships in key international markets may have provided incremental growth opportunities. Clarus expects fourth-quarter revenues to be approximately $70 million.

The company’s emphasis on high-margin “A-style” products is expected to have supported profitability in the fourth quarter. By streamlining its product portfolio and exiting low-margin categories, Clarus is likely to have enhanced its gross margins while improving inventory turnover in the fourth quarter.

Operational improvements and restructuring efforts within the Adventure segment are expected to have driven cost efficiencies in the to-be-reported quarter. The company implemented structural changes aimed at optimizing its global supply chain and reducing redundancies. These actions are likely to have yielded savings, driving the bottom line in the fourth quarter. The company expects fourth quarter adjusted EBITDA to be in the range of $5 million and $7 million.

Clarus continues to navigate a challenging macroeconomic environment. Persistent headwinds in consumer spending, particularly within the outdoor retail sector, may have impacted overall demand. Additionally, supply chain disruptions and softer vehicle sales in Australia could have negatively impacted the company’s fourth-quarter performance.

What Our Model Says About CLAR Stock

Our proven model does not conclusively predict an earnings beat for Clarus this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.

Earnings ESP for CLAR: 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.

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

Recent Consumer Discretionary Releases

Hilton Worldwide Holdings Inc. (HLT - Free Report) reported exceptional fourth-quarter 2024 results, wherein adjusted earnings and total revenues surpassed the Zacks Consensus Estimate and grew year over year.

The company's performance was backed by strong demand for leisure travel, with continued growth in business transient and group travel. These robust trends supported growth in occupancy and average daily rate, resulting in increased revenue per available room. Furthermore, favorable net unit growth compared with last year and the continuous efforts in expanding the portfolio globally added to the uptrend. HLT expects the robust travel trends to continue into 2025, positioning it to deliver strong results in the near term.

Mattel, Inc. (MAT - Free Report) reported fourth-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

In 2024, Mattel repurchased $400 million worth of shares and improved its leverage ratio. The company remains ahead of schedule in achieving its $200 million cost-savings target by 2026. For 2025, Mattel projects continued revenue and earnings growth, increased investments in digital gaming and a $600 million share repurchase program, underscoring its commitment to long-term shareholder value creation. MAT anticipates its adjusted EPS in 2025 to be between $1.66 and $1.72 compared with $1.62 reported in 2024.

Marriott International, Inc. (MAR - Free Report) reported fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year quarter.

Marriott posted strong results in 2024, driven by steady global travel demand and strategic portfolio expansion. The company’s development momentum remained strong, with the signing of a record number of new deals and its development pipeline reaching 577,000 rooms. Given its vast global footprint, a loyalty program comprising nearly 228 million Marriott Bonvoy members and an asset-light model, MAR remains well-positioned to capitalize on travel demand and drive growth in the upcoming periods.

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