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What To Expect From Compass Diversified’s (CODI) Q1 Earnings

CODI Cover Image

Private equity firm Compass Diversified (NYSE: CODI) is expected to be reporting earnings next Friday after market close. Here’s what you need to know.

Compass Diversified missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $620.3 million, up 13.8% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

Is Compass Diversified a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Compass Diversified’s revenue to grow 9.9% year on year to $552.7 million, improving from the 4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.54 per share.

Compass Diversified Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

With Compass Diversified being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for financial services stocks. However, the whole sector has faced a sell-off over the last month with stocks in Compass Diversified’s peer group down 2.7% on average. Compass Diversified is up 3.5% during the same time and is heading into earnings with an average analyst price target of $14 (compared to the current share price of $6.85).

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