Compass Diversified Holdings Earnings: Here’s Why the Stock is Rising Now

Compass Diversified Holdings (NYSE:CODI) had a loss 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. Shares are up 0.28%.

Compass Diversified Holdings Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.01 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Rose 6.86% to $245.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Compass Diversified Holdings reported adjusted EPS loss of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.45. It beat the average revenue estimate of $241.42 million.

Quoting Management: “We are pleased to report strong results for the second quarter of 2013, which were consistent with management’s expectations,” stated Alan Offenberg, CEO of Compass Group Diversified Holdings LLC. “During the quarter, we maintained our focus on expanding CODI’s leading branded product businesses as Ergobaby, FOX and Liberty each posted double-digit revenue and operating income growth. We also generated stable Cash Flow across our niche industrial businesses, with a particularly strong performance by Arnold Magnetic in the quarter.”

Key Stats (on next page)…

Revenue increased 1.75% from $241.57 million in the previous quarter. EPS decreased to $-0.01 in the quarter versus EPS of $0.43 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.49 and has not changed. For the current year, the average estimate is a profit of $1.74, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]