CMPO Earnings Prediction
The chart below shows how CMPO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CMPO sees a +0.87% change in stock price 10 days leading up to the earnings, and a +9.42% change 10 days following the report. On the earnings day itself, the stock moves by -2.16%. This data can give you a slight idea of what to expect for the next quarter's release.
CMPO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
107.14M
10.58%
-1.32%
Gross Margin
51.72%
2.48%
0.14%
Operating Margin
29.91%
0.61%
2.15%
Net Margin
-79.78%
-303.16%
-357.77%
EPS
-1.10
-423.53%
-443.75%
No Data Available
CMPO Earnings Analysis
CompoSecure, Inc. Class A Common Stock Corporation (CMPO.O) Earnings Conference Call
Positive
Sales Increase Performance: 1. Strong Sales Growth: CompoSecure reported a net sales increase of 11% in Q3 2024, reaching $107.1 million compared to $96.9 million in the prior year, driven by strong international performance.
Adjusted EBITDA Increase: 2. Improved Adjusted EBITDA: Adjusted EBITDA rose by 13% to $40 million in Q3 2024, with an adjusted EBITDA margin of 37.3%, reflecting operational efficiencies and cost management.
Gross Profit Improvement: 3. Increased Gross Profit: Gross profit for Q3 2024 increased by 13% to $26 million, with gross margins improving to 52% from 51% in the previous year due to a favorable product mix.
Strong Cash Generation: 4. Positive Cash Flow: Year-to-date net cash provided by operating activities was $94 million, up 21% compared to the same period last year, indicating strong cash generation capabilities.
Contract Extension Secured: 5. Contract Extension with Capital One: CompoSecure secured a 2-year contract extension with Capital One, demonstrating customer trust and commitment to delivering differentiated products at scale.
Negative
GAAP Net Loss Analysis: 1. GAAP Net Loss: CompoSecure reported a GAAP net loss of $108 million in Q3 2024, primarily due to non-cash fair value adjustments, contrasting sharply with a $6 million non-cash benefit in the same quarter last year.
Sales Guidance Revision: 2. Revised Sales Guidance: The company revised its 2024 net sales guidance down to a range of $418 million to $424 million, indicating a slowdown compared to previous expectations and reflecting a deceleration in growth.
Future Growth Expenses: 3. Increased Expenses for Future Growth: The fourth quarter is expected to incur one-time non-recurring professional expenses of $4 million to $6 million, which will impact adjusted EBITDA, reflecting the costs associated with building M&A capabilities.
2025 Sales Growth Outlook: 4. Lowered 2025 Sales Growth Expectations: Early projections for 2025 suggest that sales growth could be lower than in 2024, indicating potential challenges in maintaining momentum in the upcoming year.
Debt Burden Concerns: 5. High Debt Levels: As of September 30, 2024, CompoSecure had total debt of $330 million, which poses a significant financial burden, despite a slight reduction from $340.3 million at the end of 2023.
CMPO FAQs
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CMPO Earning Call Sentiment
CompoSecure, Inc. (CMPO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CMPO.O
-4.73%Positive
The earnings call summary shows strong financial performance with record revenue, improved margins, and increased EBITDA. The guidance is optimistic, with expectations for continued growth and profitability. The Resolute transaction is expected to enhance free cash flow. However, competitive pressures and rising costs pose risks. The Q&A section revealed management's focus on M&A and operational efficiency, which could drive future growth. Despite some unclear responses, the overall sentiment is positive, suggesting a stock price increase of 2% to 8%.
