Compass Minerals International Misses on the Top and Bottom Lines

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Compass Minerals International (NYS: CMP) reported earnings on April 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Compass Minerals International missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
Compass Minerals International reported revenue of $315.3 million. The four analysts polled by S&P Capital IQ anticipated revenue of $326.7 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $390.6 million.

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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 $1.48. The seven earnings estimates compiled by S&P Capital IQ anticipated $1.57 per share. GAAP EPS of $1.19 for Q1 were 30% lower than the prior-year quarter's $1.69 per share.

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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 24.4%, 310 basis points worse than the prior-year quarter. Operating margin was 17.6%, 410 basis points worse than the prior-year quarter. Net margin was 12.7%, 180 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $185.6 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $4.10.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 753 members out of 781 rating the stock outperform, and 28 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give Compass Minerals International a green thumbs-up, and eight 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 $77.00.

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At the time this article was published 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 ofMotley 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 International. 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.

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