Investors might want to bet on Compass Minerals (CMP) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individu ...

Group 1 - Compass Minerals International, Inc. (CMP) has reached a significant support level and is considered a good investment pick from a technical perspective due to a "golden cross" formation [1] - A golden cross occurs when a stock's short-term moving average, such as the 50-day, crosses above its long-term moving average, like the 200-day, indicating a potential bullish breakout [1][2] - Over the past four weeks, CMP has gained 71.4%, and it currently holds a 2 (Buy) rating on the Zacks Rank, suggesting it may be poised for further breakout [3] Group 2 - The bullish outlook for CMP is reinforced by a positive earnings forecast, with no earnings estimates cut and one revision higher in the past 60 days, leading to an increase in the Zacks Consensus Estimate [3][4] - The combination of earnings estimate revisions and the technical breakout position makes CMP a stock to watch for potential gains in the near future [4]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Sales Performance - Total sales increased by 36%, or $130.6 million, driven by higher sales volumes in the Salt and Plant Nutrition segments [111]. - Salt sales increased by $122.3 million, or 39%, primarily due to higher sales volumes, which was partially offset by lower average sales prices [146]. - Plant Nutrition sales increased by $8.2 million, or 16.3%, from $50.1 million to $58.3 million [149]. - Salt sales volumes increased by 47% in total, or 1,639,000 tons, which increased sales by approximately $134.9 million [146]. - Plant Nutrition sales volumes rose by 26% year over year, contributing approximately $13.3 million to sales, as demand normalized after previous delays [153]. Financial Performance - Operating loss improved by $36.2 million to $3.1 million compared to the prior-year period, primarily due to reduced impairments in the Fortress business [111]. - Adjusted EBITDA decreased by 26%, or $41.7 million, reflecting lower impairment add-backs and a decrease in the gain on Fortress contingent consideration [117]. - Gross profit for the three months ended March 31, 2025, increased by 7%, or $5.0 million, while gross margin decreased by 4 percentage points to 16% [116]. - The diluted net loss per common share improved to $0.77, a $0.17 improvement from the prior-year period [117]. - The operating loss for Plant Nutrition decreased by $51.2 million to $1.8 million, primarily due to a prior period impairment [153]. - For the three months ended March 31, 2025, the net loss was $32.0 million, compared to a net loss of $38.9 million for the same period in 2024 [173]. - EBITDA for the three months ended March 31, 2025, was $22.3 million, while Adjusted EBITDA was $84.1 million, showing a significant improvement from the previous year's figures [173]. Impairments and Restructuring - The Fortress business recognized a full impairment loss of $53.0 million during the three and six months ended March 31, 2025 [99]. - The company recognized an impairment loss of $53.0 million related to the exit of the Fortress fire retardant business for the three months ended March 31, 2025 [128]. - The company incurred $4.0 million in restructuring charges for the three months ended March 31, 2025, related to workforce reductions and executive leadership changes [174]. Expenses and Costs - SG&A expenses decreased by $3.7 million, representing a 3.1 percentage point reduction as a percentage of sales from 9.1% to 6.0% [120]. - Interest expense increased by $0.7 million to $18.0 million due to higher interest rates and debt levels [123]. - Interest expense for the six months ended March 31, 2025, was $34.9 million, up from $33.2 million in the same period in 2024 [173]. - Other operating income decreased by $18.1 million from $20.8 million to $2.7 million, primarily due to changes in contingent consideration related to the Fortress acquisition [122]. Taxation - Income tax expense increased by $25.7 million from a benefit of $15.9 million to an expense of $9.8 million [126]. - Effective tax rate was (44%) for the three months ended March 31, 2025, primarily driven by the income mix by country [129]. Liquidity and Capital Expenditures - As of March 31, 2025, the company had liquidity of approximately $328.6 million, including $49.5 million in cash and $279.1 million available under its revolving credit facility [154]. - Outstanding indebtedness as of March 31, 2025, totaled $813.0 million, including $500.0 million under Senior Notes and $221.8 million under senior secured credit facilities [158]. - Capital expenditures for the six months ended March 31, 2025, were $35.8 million, down from $78.6 million in the same period of 2024 [166]. - The company expects fiscal year 2025 capital expenditures to be in the range of $75 million to $85 million [153]. Market and Operational Risks - Currency fluctuations and inflation may impact the company's financial condition, particularly due to operations in Canada and the U.K. [177][178]. - Climate change poses risks to product demand and operational costs, particularly for deicing and Plant Nutrition products [181]. - The company has implemented measures to mitigate market risks, including interest rate and foreign currency exchange rate risks, through derivative instruments [182]. - The company experiences seasonality in sales, with higher sales in the first and second fiscal quarters due to winter conditions affecting deicing product demand [179]. Other Notable Events - The company issued a recall for specific production lots of food-grade salt, which may impact future operations, but does not currently expect material adverse effects on results or cash flows [167][168]. - The company is exiting the Fortress fire retardant business, which has led to a significant reduction in operating losses associated with that segment [119].

Financial Data and Key Metrics Changes - Consolidated revenue for the second quarter was $495 million, up 36% year over year [15] - Operating loss improved to $3.1 million from $39.3 million in the prior year [15] - Consolidated net loss was $32 million compared to a net loss of $38.9 million in the previous period [15] - Adjusted EBITDA for the quarter was $84.1 million, down from $95.7 million a year ago [15][16] - Modified adjusted EBITDA was $76.2 million, compared to $71.9 million in the second quarter of 2024 [16] Business Line Data and Key Metrics Changes - In the Salt business, revenue increased to $433 million from $310 million a year ago [16] - Pricing in the Salt business decreased by 5% year over year to approximately $85 per ton, while volumes increased by 47% [17] - In the Plant Nutrition business, revenue rose to $58 million, up 16% year over year, with sales volumes up 26% [18] Market Data and Key Metrics Changes - North American highway deicing inventory values decreased by 47% year over year, with volumes down 59% [9][19] - The company experienced a significant working capital release of approximately $145 million from inventory [9] - Total net debt decreased by $171 million sequentially and $81 million year over year [19] Company Strategy and Development Direction - The company is focused on improving cash flow by optimizing business practices and reducing capital intensity [6] - A strategic pivot was made to rationalize North American highway deicing inventory levels to free up cash and reduce debt [6][9] - The company plans to ramp up production in response to favorable market conditions and is positioned well for the upcoming bid season [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter showed improvement due to better winter weather compared to the first quarter [5] - The company is optimistic about potential price increases and volume commitments in the upcoming bid season due to improved market conditions [27][30] - Management emphasized the importance of controlling costs and managing inventory to enhance free cash flow [19] Other Important Information - The company announced the elimination of over 10% of its corporate workforce to align its cost structure with current business needs [13] - The guidance for adjusted EBITDA for the year was increased to $188 million, reflecting improvements in both the Salt and corporate segments [19] Q&A Session Summary Question: Accounts receivable levels increased from December to March, what is the reason? - Management indicated that there are insurance settlement matters affecting accounts receivable, and balances are expected to decrease as inventory sells through [22][24] Question: What are the early indications for the upcoming bid season? - Management noted that the market is more constructive than in previous years, with early data showing increased volume commitments in some regions [27][30] Question: What are the plans for improving margins in the SOP business? - Management outlined a multi-year effort to improve production costs through better control of brine chemistries and capital projects [32][34]

Compass Minerals International (CMP) Q2 2025 Earnings Call May 08, 2025 09:30 AM ET Speaker0 Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Compass Minerals Second Quarter Fiscal twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the call over to Mr. Br ...

Fiscal 2025 Second-Quarter 2 Fiscal 2025 Second-Quarter Results Fiscal 2025 Second-Quarter Performance Overview // May 7, 2025 Business Update Forward-Looking Statements and Other Disclaimers This presentation may contain forward-looking statements, including, without limitation, statements about future efficiency and profitability, reduction of salt inventory volumes, cost optimization, Fortress North America wind down, cash flow, deleveraging, competitive advantages, efforts to unlock intrinsic value, the ...

For the quarter ended March 2025, Compass Minerals (CMP) reported revenue of $494.6 million, up 35.9% over the same period last year. EPS came in at $0.63, compared to $1.49 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $413.88 million, representing a surprise of +19.50%. The company delivered an EPS surprise of +61.54%, with the consensus EPS estimate being $0.39.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...

Compass Minerals (CMP) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $1.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 61.54%. A quarter ago, it was expected that this minerals producer would post a loss of $0.05 per share when it actually produced a loss of $0.55, delivering a surprise of -1,000%.Over the last four quarters, the c ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Compass Minerals Reports Fiscal 2025 Second-Quarter Results OVERLAND PARK, Kan. (May 7, 2025) - Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today reported fiscal 2025 second-quarter results. Unless otherwise noted, it should be assumed that time periods referenced below are on a fiscal-year basis. MANAGEMENT COMMENTARY "Compass Minerals continues to make progress on its back-to-basics strategy, a key tenet of which is optimization. This i ...