Real estate technology company Compass (NYSE: COMP) will be reporting results this Wednesday after the bell. Here’s what investors should know.
Compass missed analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $1.36 billion, up 28.7% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates. It reported 49,121 transactions, up 27.8% year on year.
Is Compass a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Compass’s revenue to grow 20.9% year on year to $2.06 billion, improving from the 13.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Compass has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Compass’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Hasbro’s revenues decreased 1.5% year on year, beating analysts’ expectations by 11.2%, and Levi's reported revenues up 6.4%, topping estimates by 5.8%. Hasbro traded down 3.3% following the results while Levi's was up 11.1%.
Read our full analysis of Hasbro’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.6% on average over the last month. Compass is up 17.8% during the same time and is heading into earnings with an average analyst price target of $8.45 (compared to the current share price of $7.40).
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