Compass Minerals International Earnings: Everything You Must Know Now

Compass Minerals International Inc. (NYSE:CMP) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Compass Minerals International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.31 in the quarter as EPS of $0.31 in the year-earlier quarter.

Revenue: Decreased 2.63% to $173.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Compass Minerals International Inc. reported adjusted EPS income of $0.31 per share. By that measure, the company missed the mean analyst estimate of $0.40. It missed the average revenue estimate of $177.44 million.

Quoting Management: “Compass Minerals generated strong cash flow from operations through the first six months of the year demonstrating the solid underlying fundamentals of both its specialty fertilizer and salt businesses,” said Fran Malecha, Compass Minerals president and CEO. “I believe our ongoing cost-reduction efforts, such as the steps we took this quarter to streamline management, and a return to more-normal operating rates will provide EBITDA margin expansion throughout the remainder of 2013. We will pursue every opportunity to fine-tune our operations to extract even greater value from our assets.”

Key Stats (on next page)…

Revenue decreased 54.7% from $383.7 million in the previous quarter. EPS decreased 77.54% from $1.38 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 $0.77 to a profit $0.72. For the current year, the average estimate has moved up from a profit of $3.89 to a profit of $4.19 over the last ninety days.

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