What factors influenced CODI's EPS in 2024?

Compass Diversified Holdings (NYSE: CODI) experienced a significant decline in earnings per share (EPS) in 2024, with a reported EPS of -$1.14 for the fourth quarter (Q4), missing the forecast of $0.56. Despite this miss, the company demonstrated strong revenue growth and operational efficiency. The key factors that influenced CODI's EPS in 2024 are as follows: 1. **Revenue Growth**: The company saw a 13.8% increase in consolidated net sales year-over-year, reaching $620.3 million. This significant revenue growth is a positive indicator of the company's business performance and market demand for its products and services. 2. **Adjusted EBITDA Growth**: Compass Diversified's adjusted EBITDA grew by 29% year-over-year to $118 million. This indicates improved operational efficiency and profitability, which is a positive signal for the company's financial health. 3. **Acquisitions and Divestitures**: The company made strategic moves by acquiring Honeypot and divesting Ergobaby and Crosman Airgun business. These transactions could have had an impact on the company's short-term earnings, as acquisitions often involve integration costs and divestitures may involve one-time charges. 4. **Market Conditions**: While the company's consolidated net sales increased, the overall market conditions and competitive landscape may have influenced the company's profitability. External factors such as economic conditions, industry trends, and competitive pressures can impact a company's earnings. In conclusion, while CODI's EPS in 2024 was influenced by revenue growth and improved operational efficiency, the company's strategic moves and market conditions also played a role in shaping its earnings.