Outdoor lifestyle and equipment company Clarus (NASDAQ:CLAR) will be reporting earnings tomorrow after market hours. Here’s what to expect.

Clarus missed analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $56.48 million, down 2.5% year on year. It was a disappointing quarter for the company, with a miss of analysts’ operating margin estimates.

Is Clarus a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Clarus’s revenue to decline 10.2% year on year to $73.01 million, improving from the 29.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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.

Looking at Clarus’s peers in the leisure products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Malibu Boats’s revenues decreased 32.9% year on year, beating analysts’ expectations by 2.6%, and Latham reported a revenue decline of 6.4%, falling short of estimates by 1.1%. Malibu Boats traded up 4.3% following the results.

Read our full analysis of Malibu Boats’s results here and Latham’s results here.

There has been positive sentiment among investors in the leisure products segment, with share prices up 3.3% on average over the last month. Clarus is up 5.2% during the same time and is heading into earnings with an average analyst price target of $6.29 (compared to the current share price of $4.65).

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