CompoSecure (CMPO) shares plummeted nearly 7% in Wednesday's after-market session, following the payment card maker's weaker-than-expected fourth quarter earnings results.
For the quarter ended December 31, 2024, CMPO reported net sales of $100.9 million, up just 1% year-over-year and missing the consensus estimate of $102.2 million. The company cited higher costs and expenses related to new card designs, production inefficiencies, and inflationary pressures weighing on profitability.
Adjusted earnings per share came in at $0.20, below analysts' expectations of $0.22 and lower than $0.24 in the prior-year period. Gross margins compressed to 52.1% from 52.9% a year ago, while selling, general and administrative expenses surged 65% to $36.9 million.
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