Compass Diversified Holdings (NYSE:CODI) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Compass Diversified Holdings Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 91.18% to $0.03 in the quarter versus EPS of $0.34 in the year-earlier quarter.
Revenue: Rose 3.96% to $241.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Compass Diversified Holdings reported adjusted EPS income of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0.36. It beat the average revenue estimate of $220.26 million.
Quoting Management: “Our strong results for the first quarter of 2013 exceeded management’s expectations, as Cash Flow increased 25.2% compared to the year-earlier period,” stated Alan Offenberg, CEO of Compass Group Diversified Holdings LLC. “We continue to achieve considerable revenue and earnings growth on a combined basis across our branded products businesses consisting of CamelBak, ERGObaby, Fox and Liberty Safe. We also maintained relative stability in the performance of our four niche industrial businesses comprised of Advanced Circuits, American Furniture, Tridien Medical and Arnold Magnetic. Based on the continued application of our business model, we paid a first quarter distribution of $0.36 per share. As we continue to provide attractive cash distributions, we remain focused on leveraging our balance sheet strength to drive future performance. Our substantial liquidity bodes well for CODI to be able to continue to reinvest in our current family of leading middle market businesses while pursuing accretive acquisition opportunities that create significant value for our owners.”
Key Stats (on next page)…
Revenue increased 10.75% from $218.15 million in the previous quarter. EPS decreased 90.32% from $0.31 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.45 to a profit $0.43. For the current year, the average estimate has moved up from a profit of $1.62 to a profit of $1.65 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)