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

Private equity firm Compass Diversified (NYSE:CODI) is expected to be reporting results next Tuesday after the bell. Here’s what to look for.

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.

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, there has been positive investor sentiment in the segment, with share prices up 2.3% on average over the last month. Compass Diversified is up 19.1% during the same time and is heading into earnings with an average analyst price target of $14 (compared to the current share price of $7.42).

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