Compass Minerals International (NYSE:CMP) Shares Gap Down After Earnings Miss

Key Points

• Compass Minerals International shares gapped down after reporting a quarterly earnings per share (EPS) of ($0.39), missing analyst expectations of ($0.13).
• The company's revenue was $214.60 million for the quarter, surpassing estimates of $208.60 million, while experiencing a 5.8% year-over-year growth.
• Analysts have recently downgraded the stock from a "strong-buy" to a "buy," with target prices ranging from $20.00 to $22.00.

Compass Minerals International, Inc. (NYSE:CMP - Get Free Report)'s stock price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $21.50, but opened at $20.77. Compass Minerals International shares last traded at $21.22, with a volume of 78,718 shares.

The basic materials company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.26). The company had revenue of $214.60 million for the quarter, compared to analyst estimates of $208.60 million. Compass Minerals International had a negative return on equity of 24.24% and a negative net margin of 12.15%. The company's quarterly revenue was up 5.8% compared to the same quarter last year. During the same period in the prior year, the company earned ($1.05) EPS.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Wall Street Zen downgraded Compass Minerals International from a "strong-buy" rating to a "buy" rating in a report on Friday, June 27th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $22.00 target price (up previously from $14.00) on shares of Compass Minerals International in a report on Monday, June 23rd. Finally, BMO Capital Markets raised their target price on Compass Minerals International from $15.00 to $20.00 and gave the company a "market perform" rating in a report on Monday, May 12th.

Institutional Investors Weigh In On Compass Minerals International

Hedge funds have recently modified their holdings of the company. Koch Inc. acquired a new stake in shares of Compass Minerals International during the 4th quarter valued at $79,139,000. Net Worth Advisory Group acquired a new position in Compass Minerals International during the 1st quarter worth about $178,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Compass Minerals International by 18.5% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 105,915 shares of the basic materials company's stock valued at $1,192,000 after purchasing an additional 16,558 shares during the period. GAMMA Investing LLC lifted its stake in shares of Compass Minerals International by 361.4% in the 1st quarter. GAMMA Investing LLC now owns 4,812 shares of the basic materials company's stock valued at $45,000 after purchasing an additional 3,769 shares during the period. Finally, Invesco Ltd. lifted its stake in shares of Compass Minerals International by 42.2% in the 4th quarter. Invesco Ltd. now owns 199,794 shares of the basic materials company's stock valued at $2,248,000 after purchasing an additional 59,312 shares during the period. Institutional investors and hedge funds own 99.78% of the company's stock.

Compass Minerals International Price Performance

The company has a market capitalization of $851.29 million, a price-to-earnings ratio of -5.78 and a beta of 1.11. The business has a 50 day moving average price of $20.57 and a 200-day moving average price of $15.46. The company has a debt-to-equity ratio of 3.37, a quick ratio of 1.12 and a current ratio of 1.84.

Compass Minerals International Company Profile

Compass Minerals International, Inc, provides essential minerals in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products.

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