We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Post Holdings (POST) Q2 Earnings Lag Estimates, Sales Rise
Read MoreHide Full Article
Post Holdings, Inc. (POST - Free Report) reported second-quarter fiscal 2020 results, wherein earnings declined year over year and missed the Zacks Consensus Estimate. Nonetheless, sales were strong – rising year over year and beating the consensus mark.
The company has witnessed an increase in demand for its products, which are sold online as well as through food, drug, mass, thanks to the coronavirus outbreak-led stockpiling and higher at-home consumption. However, Post Holdings’ foodservice business has been adversely impacted by reduced demand from full service restaurants, quick service restaurants, education, and travel and lodging amid the pandemic.
To maintain financial flexibility amid the pandemic, the company has drawn down $500.0 million from its revolving credit facility on Mar 23, 2020. Nevertheless, on May 5, management repaid $150.0 million of the outstanding principal amount on its revolving credit facility. Apart from this, due to uncertainties related to the coronavirus outbreak, management withdrew its fiscal 2020 adjusted EBITDA and capital expenditure view, which was previously provided on Feb 6, 2020.
Post Holdings Inc Price, Consensus and EPS Surprise
Adjusted earnings were 65 cents per share, missing the Zacks Consensus Estimate of 91 cents in the fiscal second quarter. Also, the metric is lower than adjusted earnings of $1.31 per share reported in the year-ago period.
The company registered sales of $1,494.2 million, reflecting a rise of 7.7% from $1,387.8 million in the prior-year quarter. Moreover, the figure surpassed the consensus mark of 1,413 million.
Further, gross profit of $438.8 million declined 2.8%, whereas the gross margin contracted 310 basis points (bps) to 29.4% in the quarter under review.
Meanwhile, the company witnessed SG&A expenses of $245 million, up 8.5% from $225.8 in the year-ago quarter. SG&A expenses, as a percentage of sales, expanded 10 bps to 16.4% in the reported quarter.
Post Holdings generated operating profit of $153.5 million in the reported quarter. This depicts a decline of 17.6% from $186.3 million in the year-ago quarter.
Adjusted EBITDA declined 2.4% to $291.7 million from $298.9 million in the prior-year quarter.
Segment Details
Post Consumer Brands: Sales in the segment increased 10.6% year over year to $507.9 million in the quarter. Volumes increased 14.2%. Segmental profit was $92.4 million, marking a increase of 11.1% from the prior-year period.
Weetabix: Segmental sales increased 8.9% to $113.4 million in the reported quarter. Volumes grew to the tune of 6%. Segmental profit of $28 million increased 18.6% year over year.
Foodservice: Sales declined 2.7% to $378.4 million in the quarter under review. Segmental profit was $23.8 million, reflecting year-over-year decline of 49.8%.
Refrigerated Retail: Sales in the segment were $237.6 million, which increased 8.2% from the year-ago quarter. Segmental profit of $30.2 million improved 14% year over year.
BellRing Brands: Sales of $257.5 million rose 18.9% mainly due to strength in its Premier Protein brand. Premier Protein brand grew on the back of higher purchases, owing to the coronavirus outbreak-led pantry loading along with increased promotional activity. However, segmental profit of $35.1 million decreased 20.2% due to increased marketing and advertising costs along with increased public company expenses.
Financial Details
The company concluded the quarter with cash and cash equivalents of $1,179.4 million, long-term debt of $7,171.3 million, and shareholders’ equity of $2,865.2 million.
Cash provided by operating activities was $89 million at the end of six months ended Mar 31, 2020. Further, the company approved a new share repurchase program of $400 million on Dec 6, 2019, for two years. During the quarter under review, Post Holdings bought back 2 million shares worth $206.0 million. Following this, it had $161.9 million remaining under its share-repurchase plan at the end of the fiscal second quarter.
Price Performance
Notably, shares of this Zacks Rank #3 (Hold) company have lost17.9% in the past three months compared with the industry’s decline of 11.2%.
Campbell Soup Company (CPB - Free Report) presently has a long-term earnings growth rate of 7.2% and a Zacks Rank #2.
Conagra Brands (CAG - Free Report) currently has a long-term earnings growth rate of 7% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Post Holdings (POST) Q2 Earnings Lag Estimates, Sales Rise
Post Holdings, Inc. (POST - Free Report) reported second-quarter fiscal 2020 results, wherein earnings declined year over year and missed the Zacks Consensus Estimate. Nonetheless, sales were strong – rising year over year and beating the consensus mark.
The company has witnessed an increase in demand for its products, which are sold online as well as through food, drug, mass, thanks to the coronavirus outbreak-led stockpiling and higher at-home consumption. However, Post Holdings’ foodservice business has been adversely impacted by reduced demand from full service restaurants, quick service restaurants, education, and travel and lodging amid the pandemic.
To maintain financial flexibility amid the pandemic, the company has drawn down $500.0 million from its revolving credit facility on Mar 23, 2020. Nevertheless, on May 5, management repaid $150.0 million of the outstanding principal amount on its revolving credit facility. Apart from this, due to uncertainties related to the coronavirus outbreak, management withdrew its fiscal 2020 adjusted EBITDA and capital expenditure view, which was previously provided on Feb 6, 2020.
Post Holdings Inc Price, Consensus and EPS Surprise
Post Holdings Inc price-consensus-eps-surprise-chart | Post Holdings Inc Quote
Q2 in Detail
Adjusted earnings were 65 cents per share, missing the Zacks Consensus Estimate of 91 cents in the fiscal second quarter. Also, the metric is lower than adjusted earnings of $1.31 per share reported in the year-ago period.
The company registered sales of $1,494.2 million, reflecting a rise of 7.7% from $1,387.8 million in the prior-year quarter. Moreover, the figure surpassed the consensus mark of 1,413 million.
Further, gross profit of $438.8 million declined 2.8%, whereas the gross margin contracted 310 basis points (bps) to 29.4% in the quarter under review.
Meanwhile, the company witnessed SG&A expenses of $245 million, up 8.5% from $225.8 in the year-ago quarter. SG&A expenses, as a percentage of sales, expanded 10 bps to 16.4% in the reported quarter.
Post Holdings generated operating profit of $153.5 million in the reported quarter. This depicts a decline of 17.6% from $186.3 million in the year-ago quarter.
Adjusted EBITDA declined 2.4% to $291.7 million from $298.9 million in the prior-year quarter.
Segment Details
Post Consumer Brands: Sales in the segment increased 10.6% year over year to $507.9 million in the quarter. Volumes increased 14.2%. Segmental profit was $92.4 million, marking a increase of 11.1% from the prior-year period.
Weetabix: Segmental sales increased 8.9% to $113.4 million in the reported quarter. Volumes grew to the tune of 6%. Segmental profit of $28 million increased 18.6% year over year.
Foodservice: Sales declined 2.7% to $378.4 million in the quarter under review. Segmental profit was $23.8 million, reflecting year-over-year decline of 49.8%.
Refrigerated Retail: Sales in the segment were $237.6 million, which increased 8.2% from the year-ago quarter. Segmental profit of $30.2 million improved 14% year over year.
BellRing Brands: Sales of $257.5 million rose 18.9% mainly due to strength in its Premier Protein brand. Premier Protein brand grew on the back of higher purchases, owing to the coronavirus outbreak-led pantry loading along with increased promotional activity. However, segmental profit of $35.1 million decreased 20.2% due to increased marketing and advertising costs along with increased public company expenses.
Financial Details
The company concluded the quarter with cash and cash equivalents of $1,179.4 million, long-term debt of $7,171.3 million, and shareholders’ equity of $2,865.2 million.
Cash provided by operating activities was $89 million at the end of six months ended Mar 31, 2020. Further, the company approved a new share repurchase program of $400 million on Dec 6, 2019, for two years. During the quarter under review, Post Holdings bought back 2 million shares worth $206.0 million. Following this, it had $161.9 million remaining under its share-repurchase plan at the end of the fiscal second quarter.
Price Performance
Notably, shares of this Zacks Rank #3 (Hold) company have lost17.9% in the past three months compared with the industry’s decline of 11.2%.
Some Solid Food Stocks
General Mills (GIS - Free Report) currently has a long-term earnings growth rate of 7.5% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Campbell Soup Company (CPB - Free Report) presently has a long-term earnings growth rate of 7.2% and a Zacks Rank #2.
Conagra Brands (CAG - Free Report) currently has a long-term earnings growth rate of 7% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>