CLAR Earnings Prediction
The chart below shows how CLAR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CLAR sees a +1.23% change in stock price 10 days leading up to the earnings, and a -0.46% change 10 days following the report. On the earnings day itself, the stock moves by -3.11%. This data can give you a slight idea of what to expect for the next quarter's release.
CLAR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
67.11M
-32.94%
18.82%
Gross Margin
35.01%
-1.44%
-3.10%
Operating Margin
-6.53%
-273.67%
-51.16%
Net Margin
-4.70%
273.02%
-51.65%
EPS
-0.08
-166.67%
-42.86%
No Data Available
CLAR Earnings Analysis
Clarus Corporation Common Stock Corporation (CLAR.O) Earnings Conference Call
Positive
Adjusted EBITDA Improvement: 1. Improved Adjusted EBITDA: Clarus Corporation reported a 25% increase in adjusted EBITDA for the Outdoor segment, despite a 19% decline in revenue, demonstrating effective cost management and operational efficiency.
Gross Margin Improvement: 2. Significant Gross Margin Expansion: The consolidated adjusted gross margin improved by 420 basis points year-over-year to 37.8%, driven by a focus on higher-margin A styles and simplification strategies.
Cash Position Improvement: 3. Strong Cash Position: The company ended Q3 with over $36 million in cash, a significant increase from $11.3 million at the end of 2023, reflecting improved liquidity and financial stability.
Effective Inventory Strategy: 4. Inventory Management Success: Inventory levels are trending towards the low $60 million range, with over 70% comprised of high-margin A styles, indicating effective inventory management and a focus on profitability.
Cost Savings Restructuring: 5. Cost Savings Initiatives: Clarus has implemented a restructuring in the Adventure segment expected to yield annual run rate savings of $2.4 million, allowing for continued investment in growth initiatives without compromising financial health.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Clarus Corporation reported a 17% decline in total sales for Q3 2024, falling to $67.1 million from $81.3 million in the prior year.
Adventure Segment Decline: 2. Weak Adventure Segment Performance: The Adventure segment experienced an 11.9% decrease in sales compared to the previous year, with a significant 58% decline in OEM sales due to supply chain disruptions.
Revised Revenue Expectations: 3. Lowered Revenue Guidance: The company revised its full-year revenue guidance down by approximately $20 million, now expecting total sales between $260 million to $266 million, primarily due to a $12 million decline in the Adventure segment.
Negative Cash Flow Challenges: 4. Negative Free Cash Flow: Clarus reported a free cash flow outflow of $9.4 million for Q3 2024, indicating challenges in generating cash from operations after capital expenditures.
Cost Management Pressures: 5. Increased Cost Management Challenges: Despite a reduction in operating expenses by 13.1%, the company still faces pressures from ongoing litigation costs and the need for further cost management in the Adventure segment.
CLAR FAQs
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CLAR Earning Call Sentiment
Clarus Corporation (CLAR) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CLAR.O
-1.04%Positive
The earnings report reveals a 17% YoY revenue decline and a reduction in guidance, indicating weak financial performance. The Q&A section highlights challenges in the Adventure segment and wholesale partnerships, further supporting a negative outlook. Despite improved gross margins and debt elimination, the overall sentiment remains negative due to revenue declines, competitive pressures, and economic factors affecting the outdoor market. The negative sentiment is compounded by uncertainties in OEM contributions and international market recovery, as well as unclear management responses in the Q&A.
