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Compass (COMP) Q3 Earnings Report Preview: What To Look For

COMP Cover Image

Real estate technology company Compass (NYSE:COMP) will be reporting results tomorrow after market close. Here’s what investors should know.

Compass beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $1.70 billion, up 13.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ earnings estimates and a solid beat of analysts’ EBITDA estimates. It reported 60,390 total transactions, up 11.4% 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 12.2% year on year to $1.5 billion, a reversal from the 10.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

Compass Total Revenue

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 three times over the last two years.

Looking at Compass’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CBRE delivered year-on-year revenue growth of 14.8%, beating analysts’ expectations by 2.7%, and Nike reported a revenue decline of 10.4%, in line with consensus estimates. CBRE traded up 7.7% following the results while Nike was down 6.8%.

Read our full analysis of CBRE’s results here and Nike’s results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Compass is down 5.9% during the same time and is heading into earnings with an average analyst price target of $5.33 (compared to the current share price of $5.75).

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