Why Compass Stock Turned South After Hours

$Compass(COMP.US)$ shares are trading lower in Monday's after-hours session after the company reported worse-than-expected financial results and issued guidance below analyst estimates.

Compass said second-quarter revenue increased 4% year-over-year to $2 billion, which missed average analyst estimates of $2.12 billion. The company reported a quarterly net loss of (24) cents per share, which missed average analyst estimates for a loss of (14) cents per share.

Compass attributed the higher net loss to higher expenses related to strategic business initiatives, stock compensation, and restructuring costs.