Compass Diversified Holdings (NYSE: CODI) reported earnings on March 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Compass Diversified Holdings beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share contracted to a loss.

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

Revenue details
Compass Diversified Holdings booked revenue of $218.2 million. The five analysts polled by S&P Capital IQ expected a top line of $204.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 -$0.14. The four earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS were -$0.14 for Q4 against $1.19 per share for the prior-year quarter.

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 30.9%, 290 basis points worse than the prior-year quarter. Operating margin was 6.4%, 470 basis points better than the prior-year quarter. Net margin was -3.1%, much worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $222.8 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $920.5 million. The average EPS estimate is $0.71.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 309 members out of 316 rating the stock outperform, and seven members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Compass Diversified Holdings a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Compass Diversified Holdings is outperform, with an average price target of $15.88.

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