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Compass Minerals International Misses Where it Counts

By Seth Jayson - Updated Apr 7, 2017 at 12:03PM

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Just the facts, Fool.

Compass Minerals International (NYSE: CMP) reported earnings on Oct. 29. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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Stocks Mentioned

Compass Minerals International, Inc. Stock Quote
Compass Minerals International, Inc.
CMP
$36.53 (-0.52%) $0.19

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