CompoSecure, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
CompoSecure, Inc. (NASDAQ:CMPO) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat both earnings and revenue forecasts, with revenue of US$84m, some 8.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.16, 23% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for CompoSecure
Taking into account the latest results, the current consensus from CompoSecure's two analysts is for revenues of US$355.3m in 2022, which would reflect a sizeable 23% increase on its sales over the past 12 months. Earnings are expected to improve, with CompoSecure forecast to report a statutory profit of US$0.72 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$344.3m and earnings per share (EPS) of US$0.89 in 2022. So it's pretty clear the analysts have mixed opinions on CompoSecure after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.
There's been no major changes to the price target of US$16.00, suggesting that the impact of higher forecast sales and lower earnings won't result in a meaningful change to the business' valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that CompoSecure's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 18% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CompoSecure to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for CompoSecure going out as far as 2023, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 4 warning signs for CompoSecure (of which 2 are a bit unpleasant!) you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
