What happened
Shares of Compass Minerals International (CMP -3.25%) had tumbled nearly 13% at 10:30 a.m. ET on Wednesday. Weighing on the minerals producer were its fiscal first-quarter results.
So what
Compass Minerals International got "off to a mixed start" in its fiscal year, according to comments by CEO Kevin Crutchfield in the earnings press release. While results improved in its salt division, weak demand in its plant nutrition segment and cost pressures hurt its financial results.
As a result, even though revenue grew by 6.3% year over year to $352.4 million, it missed the analysts' consensus estimate by $26.4 million. Meanwhile, the company posted a loss of $0.3 million, or $0.01 per share, which was $0.59 per share below analysts' expectations.
The company also updated its financial outlook for the fiscal year. Compass Minerals now anticipates that results from its salt segment will likely come in below the midpoint of its guidance range due to higher production costs and below-trend sales during the first part of the year. Meanwhile, due to lower-than-expected sales volumes, the company's full-year outlook for plant nutrition has declined and widened from its prior guidance.
Now what
Compass Minerals remains "committed to building a foundation for long-term value creation," stated CEO Crutchfield in the earnings release. He noted that the company is making great strides to accelerate growth and reduce the impact of the weather on its operations by expanding into adjacent mineral categories. It recently closed an investment that will help fund the first phase of its lithium development, which could be a key long-term growth driver for the company.
