Q3 Earnings Highs And Lows: Clarus (NASDAQ:CLAR) Vs The Rest Of The Leisure Products Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Clarus (NASDAQ:CLAR) and its peers.
Leisure products cover a wide range of goods in the consumer discretionary sector. Maintaining a strong brand is key to success, and those who differentiate themselves will enjoy customer loyalty and pricing power while those who don’t may find themselves in precarious positions due to the non-essential nature of their offerings.
The 14 leisure products stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 1.1% below.
While some leisure products stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.
Clarus (NASDAQ:CLAR)
Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.
Clarus reported revenues of $67.12 million, down 17.4% year on year. This print fell short of analysts’ expectations by 8.1%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.
Management Commentary“While macroeconomic headwinds have continued to limit consumer demand in the near-term, our focus in the third quarter was on advancing our strategic plan to position Clarus for long-term profitable growth,” said Warren Kanders, Clarus’ Executive Chairman.
Clarus Total Revenue
Clarus delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 5% since reporting and currently trades at $4.51.
Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ:AOUT) is an outdoor and recreational products company that offers firearms and firearm accessories.
American Outdoor Brands reported revenues of $60.23 million, up 4% year on year, outperforming analysts’ expectations by 13.1%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
American Outdoor Brands Total Revenue
American Outdoor Brands delivered the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 57% since reporting. It currently trades at $17.11.
Founded in 1949, Ruger (NYSE:RGR) is an American manufacturer of firearms for the commercial sporting market.
Ruger reported revenues of $122.3 million, up 1.2% year on year, falling short of analysts’ expectations by 10.8%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Ruger delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.3% since the results and currently trades at $35.76.
Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.
Brunswick reported revenues of $1.27 billion, down 20.1% year on year. This result missed analysts’ expectations by 1.3%. Overall, it was a softer quarter as it also recorded full-year EPS guidance missing analysts’ expectations.
The stock is down 10.1% since reporting and currently trades at $69.25.
Started as a family business, Latham (NASDAQ:SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.
Latham reported revenues of $150.5 million, down 6.4% year on year. This print came in 1.1% below analysts' expectations. More broadly, it was a mixed quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations.
The stock is up 7.8% since reporting and currently trades at $7.08.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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