What's Going On With Compass Shares Wednesday?

Compass, Inc. COMP stock is trading higher on Wednesday after the company reported better-than-expected 2024 fiscal-year fourth-quarter sales results on Tuesday after the market closed.

The Details: Compass reported revenue of $1.38 billion, beating analysts’ estimate of $1.34 billion and representing a 25% year-over-year increase. In addition, the company reported a loss of 8 cents per share inline with analysts’ estimates.

Furthermore, the company reported that the quarter ended with $223.8 million in cash and cash equivalents. It also reported a free cash flow of $26.7 million adjusted EBITDA of $16.7 million.

“In the fourth quarter, we grew transactions by 24.1% or 3.5x faster than the market where transactions grew by 6.8% year-over-year,” said Robert Reffkin, Founder and CEO of Compass.

“This led to quarterly market share of 5.06%, or an increase of 65 basis points, which is our highest year-over-year increase in market share in twelve quarters. Importantly, organic transactions increased by 15.5% year-over-year and organic quarterly market share grew 48 basis points.”

Compass issued guidance for the 2025 fiscal-year first-quarter. It expects sales from $1.35 billion to $1.47 billion, versus analysts’ estimate of $1.32 billion.

Analyst Changes: Multiple analysts issued price target adjustments following the earnings report.

• Morgan Stanley analyst Brian Nowak maintained an Equal-Weight rating on Compass and raised the price target from $6 to $8.5.
• Oppenheimer analyst Jason Helfstein maintained an Outperform rating on Compass and raised the price target from $12 to $13.
• Goldman Sachs analyst Michael Ng maintained a Buy rating on Compass and raised the price target from $8 to $9.

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COMP Price Action: At the time of publication, Compass shares are trading 25.3% higher at $9.985, according to data from Benzinga Pro.

Image: This illustration was generated using artificial intelligence via Midjourney.