Compass Minerals International Misses on the Top and Bottom Lines

Compass Minerals International (NYSE: CMP  ) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Compass Minerals International missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.

Gross margins increased, operating margins shrank, net margins contracted.

Revenue details
Compass Minerals International recorded revenue of $267.1 million. The six analysts polled by S&P Capital IQ predicted net sales of $271.4 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $306.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.02. The eight earnings estimates compiled by S&P Capital IQ predicted $1.05 per share. GAAP EPS of $0.90 for Q4 were 31% lower than the prior-year quarter's $1.31 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.1%, 90 basis points better than the prior-year quarter. Operating margin was 15.8%, 60 basis points worse than the prior-year quarter. Net margin was 11.3%, 300 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $313.6 million. On the bottom line, the average EPS estimate is $1.43.

Next year's average estimate for revenue is $1.09 billion. The average EPS estimate is $4.58.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 760 members out of 787 rating the stock outperform, and 27 members rating it underperform. Among 183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 175 give Compass Minerals International a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Compass Minerals International is hold, with an average price target of $77.43.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Compass Minerals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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