Compass Misses Profit, Revenue Market Views But Lifts Dividend
By Michael Susin
Compass Group reported a weaker-than-expected increase in pretax profit for fiscal 2023, but raised its dividend payout.
The U.K. catering contractor on Monday reported pretax profit of 1.75 billion pounds ($2.18 billion) for the year ended Sept. 30 compared with GBP1.47 billion a year earlier. This compares with a consensus forecast of GBP1.84 billion taken from FactSet and based on nine analysts' estimates.
Revenue rose to GBP31.03 billion from GBP25.5 billion, reflecting a robust trading performance and favorable exchange rates. However, it missed a company-provided market estimate of GBP31.2 billion.
Underlying operating profit--which strips out exceptional and other one-off items--came in at GBP2.12 billion from GBP1.59 billion while the underlying margin was 6.8% compared with 6.2%, both in line with the company-compiled market estimate.
The board raised its dividend to 43.1 pence a share from 31.5 pence.
Looking ahead, Compass expects underlying operating profit growth toward 13% for fiscal 2024, delivered through high single-digit organic revenue growth and margin progression.
"The business is in great shape operationally and financially and well positioned for a more focused growth phase. Despite some macroeconomic uncertainty, favorable market dynamics continue and, with a global market share of less than 15% and around 50% of the market still self-operated, we have an exciting structural growth opportunity," Chief Executive Dominic Blakemore said.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
November 20, 2023 02:33 ET (07:33 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
-
When Will the Fed Start Cutting Interest Rates?
-
What’s the Difference Between the CPI and PCE Indexes?
-
Powell Unfazed By Sticky Inflation, but Rate Cuts Are Far Off
-
After Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?
-
Best- and Worst-Performing Stocks of April 2024
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Small-Cap and Value Stocks Are Undervalued
-
4 Utility Stocks to Play the AI Data Center Boom
-
Albemarle Earnings: We Expect Improved Results In the Rest of Year Following Cyclically Low Profits
-
Novo Nordisk Earnings: Raised Fair Value Estimate Still a Contrast to Market Overenthusiasm
-
After Earnings, Is Verizon Stock a Buy, a Sell, or Fairly Valued?
-
Look Inside Berkshire Hathaway’s Portfolio Before Its Annual Meeting
-
How to Invest Like Warren Buffett
-
Cognizant Earnings: Improved Profitability Buttresses Results as Customer Spending Remains Muted
-
10 Top-Performing Dividend Stocks of the Month