Compass Group Earnings: Business Is Heating Up As We Progress Through 2023

Narrow-moat Compass Group topped its impressive first-quarter results, with organic revenue growth of 25% for the first half of the year. Operating margins rose by 80 basis points to 6.6%, still a way off coronavirus prepandemic levels, but moving steadily in the right direction at least. Management have upgraded full-year guidance on the back of these strong numbers, so while we also expect to adjust our forecasts, we believe the shares are fairly valued relative to our GBX 2,060 fair value estimate.