Compass Minerals International
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Compass Minerals International beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Compass Minerals International reported revenue of $181.0 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $175.6 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $229.1 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 $0.31. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.32 per share. GAAP EPS of $0.28 for Q3 were 73% lower than the prior-year quarter's $1.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.0%, 870 basis points worse than the prior-year quarter. Operating margin was 7.8%, 1,110 basis points worse than the prior-year quarter. Net margin was 5.2%, 990 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $340.8 million. On the bottom line, the average EPS estimate is $1.33.
Next year's average estimate for revenue is $1.02 billion. The average EPS estimate is $3.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 760 members out of 785 rating the stock outperform, and 25 members rating it underperform. Among 171 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 give Compass Minerals International a green thumbs-up, and six 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.