Here's How Post Holdings (POST) is Placed Before Q4 Earnings

MO MKC UNFI POST

Post Holdings, Inc. (POST - Free Report) is likely to witness top- and bottom-line growth when it reports fourth quarter fiscal 2021 numbers on Nov 18, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $1,661 million, which suggests an increase of 17.7% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has gone down by 4.6% in the past 30 days and is currently pegged at 83 cents per share. The consensus mark for the bottom line suggests an increase of 43.1% from the year-ago quarter’s reported figure. Post Holdings has a trailing four-quarter negative earnings surprise of 14.4%, on average.

Key Aspects to Note

Post Holdings fourth-quarter performance is likely to have gained from recovery in its Foodservice segment, driven by the gradual easing of pandemic-led restrictions and consumers’ increased outdoor dining habits.

The company’s performance across categories is likely to have been supported by benefits from the Henningsen, Peter Pan and Almark acquisitions. The buyouts of Private label ready-to-eat (PL RTE) cereal business and Egg Beaters liquid egg brand have strengthened the company’s portfolio.

Post Holdings has also been witnessing strength in the BellRing Brands segment for a while now. The unit is gaining from strategic investments and higher promotional activity. Post Holdings’ innovation efforts are also on track. All the factors above are likely to have bolstered the company’s performance in the to-be-reported quarter.

On the flip side, the lapping of last year’s strong demand across some of its segments, especially Post Consumer Brands, is likely to have been a drag. The company’s fourth-quarter performance is likely to have been affected by pandemic-led shortages in labor and freight as well as other disruptions. This has been affecting the company’s service levels and fill rates, thereby leading to a rise to costs. Apart from this, commodity cost inflation is a concern for the company.

 

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 has a Zacks Rank #4 and an Earnings ESP of -7.51%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

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

United Natural Foods, Inc. (UNFI - Free Report) currently has an Earnings ESP of +30.44% and a Zacks Rank of 1. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of 61 cents per share suggests growth of 19.6% from the year-ago quarter’s reported figure

United Natural Foods’ top line is also expected to rise year over year. The consensus mark for revenues is pegged at $6.82 billion, indicating an increase of 2.2% from the figure reported in the year-ago quarter. UNFI has a trailing four-quarter earnings surprise of 13.1%, on average

McCormick & Company, Inc. (MKC - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank of 3. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings of 80 cents per share suggests growth of 1.3% from the year-ago quarter’s reported figure

McCormick’s top line is also expected to rise year over year. The consensus mark for revenues is pegged at $1.71 billion, indicating an increase of 9.6% from the figure reported in the year-ago quarter. MKC has a trailing four-quarter earnings surprise of 10.3%, on average.

Altria Group, Inc. (MO - Free Report) currently has an Earnings ESP of +0.09% and a Zacks Rank of 3. The company is expected to register bottom-line growth when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly earnings of $1.09 per share suggests growth of 10.1% from the year-ago quarter’s reported figure

Altria’s top line is also expected to decline year over year. The consensus mark for revenues is pegged at $5.04 billion, indicating a decline of 0.2% from the figure reported in the year-ago quarter. MO has a trailing four-quarter earnings surprise of 0.72%, on average.

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