The shares of Compass (LSE: CPG) climbed 11p to 887p during early trade this morning after the catering services group said it had delivered “another good performance” during its third quarter.
The FTSE 100 member claimed organic revenue growth during April, May and June had been 4% adjusted for Easter and other holidays, and was 5.2% on a stautory reported basis.
Compass added that operating margins had been lifted by 20 basis points during the quarter.
Today’s statement revealed mixed geographical progress, with underlying sales up 8% in North America, down 3% in Europe and Japan, and up 10% in emerging markets such as Turkey and Brazil.
The statement also revealed £80m had been spent on acquisitions and £224m had been spent on share buybacks during the first nine months of the group’s financial year.
Looking ahead, Compass described its overall expectations for the full year as “positive and unchanged” and that it was “very optimistic about the structural growth potential” of its markets for the long term.
Prior to today, City boffins were predicting Compass would improve its earnings by 10% to 47p per share for the current year. The dividend was expected to be lifted 11% to 23.7p per share.
Following this morning’s price gain, the shares could therefore trade at a potential 19 times forecast profits and yield a possible 2.7%.
Of course, whether that valuation and today’s trading statement combine to make the shares of Compass a ‘buy’ remains something only you can decide.
However, if you already own Compass shares and are seeking an alternative buying opportunity, the Fool’s top analysts have named one company they believe will generate superior long-term capital growth…
…and such is their conviction, they have declared the share “The Fool’s Top Growth Stock For 2013“.
Simply click here for the report — it’s free.
> Maynard does not own any share mentioned in this article.
According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…
And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...
It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…
But you need to get in before the crowd catches onto this ‘sleeping giant’.