CLAR - Clarus Corporation stock crashes after earnings miss lowered guide

Clarus Corporation ( NASDAQ: CLAR ) tumbled over 20% on Tuesday after posting a miss on earnings and cutting its full-year forecast.

For the third quarter, the Utah-based outdoor company reported $0.26 in earnings per share, missing estimates by $0.16, alongside a narrow top-line miss . Gross margins contracted 190 basis points largely due to higher freight costs, according to the company.

“In our Adventure segment, limited vehicle deliveries and higher-than-normal inventory in the channel persisted in our home market of Australia, and we began to experience challenging conditions in North America after a strong first half of the year,” management said. “These headwinds were further exacerbated by volatile foreign currency markets.”

While the company said it expects these headwinds to abate into the fourth quarter, management nonetheless trimmed the full year outlook. The company now expects fiscal year 2022 sales to grow approximately 19% to $445M as opposed to the prior $470M expectation and below the consensus of $471.8M. Foreign currency impacts are expected to contribute a $6M headwind in the fourth quarter.

After the miss, D.A. Davidson analyst Linda Bolton Weiser cut her rating on the stock from “Buy” to “Neutral” and reduced her price target to $9 from a prior $31. Shares fell 20.53% in the waning minutes of Tuesday’s trading.

Read more on the details of the results .

For further details see: