Investors encouraged by Compass' positive Q4 results

As Compass reports positive Q4 results Sheridan Admans, investment research manager at The Share Centre, explains what they mean for investors.

"Compass has reported encouraging Q4 results that pointed to aggressive restructuring of its European operations to deal with its weak performance in the region, which should cheer investors. However, restructuring costs are likely to impact capital returns in the short term.

"Investors will be pleased to see the group's US and emerging market operations continuing to deliver good returns. Cash flow remains strong and the group has demonstrated good earnings and dividend growth over the years.

"Share price momentum and the potential impact of restructuring costs may lead to some short term profit-taking by investors. However, we continue to recommend investors ‘buy' Compass for its long term potential and any weakness in the share price could be an opportunity to add to their holding."  

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