Compass Minerals (CMP) got here out with a quarterly lack of $0.49 per share versus the Zacks Consensus Estimate of a lack of $0.06. This compares to earnings of $0.04 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of -716.67%. 1 / 4 in the past, it was anticipated that this minerals producer would publish earnings of $0.72 per share when it really produced earnings of $0.95, delivering a shock of 31.94%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.
Compass, which belongs to the Zacks Chemical – Diversified trade, posted revenues of $199.Four million for the quarter ended June 2021, surpassing the Zacks Consensus Estimate by 10.44%. This compares to year-ago revenues of $256.1 million. The corporate has topped consensus income estimates simply as soon as over the past 4 quarters.
The sustainability of the inventory’s fast value motion based mostly on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.
Compass shares have added about 11.5% for the reason that starting of the 12 months versus the S&P 500’s achieve of 18.8%.
What’s Subsequent for Compass?
Whereas Compass has underperformed the market to this point this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist traders deal with that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified recently.
Empirical analysis reveals a powerful correlation between near-term inventory actions and developments in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful observe report of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Compass was unfavorable. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You’ll be able to see the entire record of as we speak’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Will probably be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $0.21 on $205 million in revenues for the approaching quarter and $2.15 on $1.2 billion in revenues for the present fiscal 12 months.
Traders needs to be aware of the truth that the outlook for the trade can have a cloth influence on the efficiency of the inventory as effectively. By way of the Zacks Business Rank, Chemical – Diversified is presently within the prime 48% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Compass Minerals Worldwide, Inc. (CMP): Free Inventory Evaluation Report
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