Are You Expecting This From Compass Diversified Holdings?

Updated

Compass Diversified Holdings (NYS: CODI) is expected to report Q2 earnings on Aug. 7. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict Compass Diversified Holdings's revenues will wane -46.6% and EPS will improve 28.6%.

The average estimate for revenue is $228.7 million. On the bottom line, the average EPS estimate is $0.18.


Revenue details
Last quarter, Compass Diversified Holdings reported revenue of $232.4 million. GAAP reported sales were 31% higher than the prior-year quarter's $177.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at -$0.02. GAAP EPS were -$0.02 for Q1 against -$0.15 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 33.6%, 200 basis points better than the prior-year quarter. Operating margin was 6.9%, 60 basis points better than the prior-year quarter. Net margin was -0.3%, 360 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $885.2 million. The average EPS estimate is $0.67.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 311 members out of 317 rating the stock outperform, and six members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Compass Diversified Holdings a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Compass Diversified Holdings is buy, with an average price target of $16.25.

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The article Are You Expecting This From Compass Diversified Holdings? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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