Compass Diversified Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), Compass Diversified Holdings met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank to zero.
Gross margins improved, operating margins increased, net margins dropped.
Compass Diversified Holdings reported revenue of $230.0 million. The five analysts polled by S&P Capital IQ predicted sales of $228.7 million on the same basis. GAAP reported sales were 46% lower than the prior-year quarter's $428.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.03. The three earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.14.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.7%, 970 basis points better than the prior-year quarter. Operating margin was 9.1%, 490 basis points better than the prior-year quarter. Net margin was 0.0%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $231.4 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $885.2 million. The average EPS estimate is $0.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 310 members out of 317 rating the stock outperform, and seven members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Compass Diversified Holdings a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Compass Diversified Holdings is buy, with an average price target of $16.10.
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