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What's in Store for Compass Diversified's (CODI) Q3 Earnings?

Compass Diversified CODI is scheduled to report third-quarter 2020 results on Oct 28, after market close. Its earnings and revenues are anticipated to have witnessed a decline in the quarter on a year-over-year basis.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results reflected an increase in operating expenses and lower net revenues.

Notably, the Zacks Consensus Estimate for the company’s third-quarter earnings is pegged at 27 cents per share, which indicates a decline of 25% from the prior-year quarter’s reported number. The estimate has been unchanged over the past seven days.

The Zacks Consensus Estimate for sales is pegged at $379.4 million, which suggests a 2.3% decline from the year-ago quarter’s reported figure.

Compass Diversified Holdings Price and EPS Surprise

 

Compass Diversified Holdings Price and EPS Surprise

Compass Diversified Holdings price-eps-surprise | Compass Diversified Holdings Quote

Other Key Estimates for Q3

The Zacks Consensus Estimate for total branded consumer revenues is pegged at $199 million, which suggests a 7.6% rise sequentially.

The consensus estimate for total branded consumer’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $25.84 million suggests a decline of 3% from the prior quarter.

The Zacks Consensus Estimate for total niche industrial revenues is pegged at $160 million, which suggests a 7.4% rise sequentially.

The consensus estimate for total niche industrial’s adjusted EBITDA of $24.30 million suggests a decline of 8.4% from the prior quarter.

Earnings Whispers

According to our quantitative model, chances of Compass Diversified beating the Zacks Consensus Estimate this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better, which is required to be confident of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Compass Diversified has an Earnings ESP of -15.34%.

Zacks Rank: The company currently sports a Zacks Rank #1 (Strong Buy).

Stocks to Consider

Here are a few finance stocks that you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat in their upcoming releases.

The Earnings ESP for CullenFrost Bankers CFR is +1.57% and the company carries a Zacks Rank of 3 at present. It is slated to report quarterly results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

Moody's Corporation MCO is set to release earnings figures on Oct 29. The company, which carries a Zacks Rank #2 (Buy) at present, has an Earnings ESP of +1.93%.

The Earnings ESP for BankUnited BKU is +6.10% and the company carries a Zacks Rank #3, currently. It is scheduled to report quarterly numbers on Oct 28.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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