Compass Minerals International Earnings: Here’s Why Investors are Ambivalent Now

Compass Minerals International Inc. (NYSE:CMP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Compass Minerals International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.76% to $1.38 in the quarter versus EPS of $1.48 in the year-earlier quarter.

Revenue: Rose 23.28% to $388.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Compass Minerals International Inc. reported adjusted EPS income of $1.38 per share. By that measure, the company beat the mean analyst estimate of $1.12. It beat the average revenue estimate of $364.28 million.

Quoting Management: “Typical winter weather finally arrived in many of our key markets this quarter and has helped our salt segment turn the corner on a difficult period of weather-driven challenges. Strong demand for our specialty potash products continues, although supply constraints have limited our sales in that segment,” said Fran Malecha, Compass Minerals president and CEO. “Our performance this quarter has once again demonstrated Compass Minerals’ ability to generate robust cash flow and solid earnings, and our 10th consecutive annual dividend increase reaffirmed our commitment to returning value directly to our shareholders.”

Key Stats (on next page)…

Revenue increased 45.53% from $267.1 million in the previous quarter. EPS increased 35.29% from $1.02 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 $0.52 to a profit $0.5. For the current year, the average estimate has moved down from a profit of $4.54 to a profit of $3.89 over the last ninety days.

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