Please ensure Javascript is enabled for purposes of website accessibility

Compass Minerals International Misses Where it Counts

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Looking for alternatives to Compass Minerals International? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

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

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.