Compass Group Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags

Compass Group (LON:CPG) Full Year 2024 Results

Key Financial Results

• Revenue: US$42.0b (up 11% from FY 2023).
• Net income: US$1.40b (down 12% from FY 2023).
• Profit margin: 3.3% (down from 4.2% in FY 2023). The decrease in margin was driven by higher expenses.
• EPS: US$0.82 (down from US$0.92 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Compass Group Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 3.4%. Earnings per share (EPS) missed analyst estimates by 25%.

The primary driver behind last 12 months revenue was the Business & Industry segment contributing a total revenue of US$15.9b (38% of total revenue). Notably, cost of sales worth US$39.2b amounted to 93% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling US$1.39b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how CPG's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Hospitality industry in the United Kingdom.

Performance of the British Hospitality industry.

The company's shares are up 3.4% from a week ago.

Risk Analysis

You still need to take note of risks, for example - Compass Group has 1 warning sign we think you should be aware of.

New: AI Stock Screener & Alerts

Our new AI Stock Screener scans the market every day to uncover opportunities.

• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies

Or build your own from over 50 metrics.

Explore Now for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.