Compass Minerals Q3 revenue meets estimates

Overview

• Compass Minerals fiscal Q3 revenue meets expectations, rising to $214.6 mln

• Adjusted EBITDA for fiscal Q3 rises 25% yr/yr, beating estimates

• Adjusted EPS for fiscal Q3 misses expectations, at a loss of $0.39 per share

Outlook

• Compass Minerals sees 2025 Salt revenue at $1,000 mln to $1,040 mln

• Company expects 2025 Salt adj. EBITDA of $220 mln to $229 mln

• Plant Nutrition 2025 revenue projected at $200 mln to $205 mln

Result Drivers

• SALT BUSINESS - Increased sales volumes and reduced costs led to higher operating earnings and adjusted EBITDA

• PLANT NUTRITION - Higher sales volumes and lower production costs improved operating income and adjusted EBITDA

• FINANCIAL STRATEGY - Refinancing activities and asset sales reduced net debt and enhanced financial flexibility

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy"

• Wall Street's median 12-month price target for Compass Minerals International Inc is $21.00, about 2.1% below its August 8 closing price of $21.44

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 135 three months ago

Press Release: ID:nBw3jJQ3xa