Compass Diversified Holdings's Upcoming Earnings: What You Need To Know

Seth Jayson, The Motley Fool
Updated

Compass Diversified Holdings (NYS: CODI) is expected to report Q3 earnings on Nov. 7. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Compass Diversified Holdings's revenues will compress -53.4% and EPS will grow 58.8%.

The average estimate for revenue is $228.2 million. On the bottom line, the average EPS estimate is $0.27.


Revenue details
 Last quarter, Compass Diversified Holdings reported revenue of $230.0 million. GAAP reported sales were 73% higher than the prior-year quarter's $133.1 million.

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

EPS details
 Last quarter, non-GAAP EPS came in at $0.03. GAAP EPS dropped to zero from the prior-year quarter's $0.14.

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 31.7%, 80 basis points better than the prior-year quarter. Operating margin was 9.2%, 200 basis points better than the prior-year quarter. Net margin was 0.0%, 480 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $871.4 million. The average EPS estimate is $0.94.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 306 members out of 313 rating the stock outperform, and seven members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 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 outperform, with an average price target of $16.10.

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The article Compass Diversified Holdings's Upcoming Earnings: What You Need To Know 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 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 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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