Back to top

Image: Bigstock

Factors Likely to Impact Post Holdings' (POST) Q2 Earnings

Read MoreHide Full Article

Post Holdings, Inc. (POST - Free Report) is likely to report a decline in the top and the bottom lines when it releases second-quarter fiscal 2021 numbers on May 6, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at approximately $1,412 million, which suggests a decline of 5.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for earnings has remained unchanged in the past 30 days at 55 cents per share, which indicates a drop of 15.4% from the year-ago quarter’s reported figure. Post Holdings’ bottom line surpassed the Zacks Consensus Estimate by 12.5% in the last reported quarter. It has a trailing four-quarter negative earnings surprise of 6.4%, on average.

Key Factors to Note

Post Holdings’ second-quarter performance is likely to have been affected by persistent softness in the Foodservice segment. Notably, sales and volumes in the Foodservice segment have been soft due to reduced outdoor dining trends amid the pandemic. This has led to lower demand from channels like full-service restaurants, quick-service restaurants, lodging, education and travel. The Zacks Consensus Estimate for second-quarter sales in the Foodservice segment is currently pegged at $316 million, which suggests a decline of $378 million recorded in the year-ago quarter.

Additionally, adverse impacts of elevated costs associated with the pandemic cannot be ruled out.  Moreover, high input commodity costs, especially grain prices as well as rise in transportation expenses are a concern.  Such downsides are likely to have put pressure on the company’s margins during the quarter in review.

Nevertheless, higher at-home consumption trends are likely to have been an upside. Moreover, the company’s Weetabix segment is performing well backed by gains from extruded products, biscuits, private label products and exports.

Post Holdings, Inc. Price and EPS Surprise

 

Post Holdings, Inc. Price and EPS Surprise

Post Holdings, Inc. price-eps-surprise | Post Holdings, Inc. Quote

 

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Post Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Post Holdings currently carries a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00%.

Stocks Poised to Beat Estimates

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +0.50% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Energizer Holdings, Inc. (ENR - Free Report) has an Earnings ESP of +4.24% and a Zacks Rank #3, at present.

Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +16.03% and a Zacks Rank #3.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.

Click here for the 4 trades >>

Published in