We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 - Free Report) is fighting to adapt to changing eating habits and broader consumer trends. The consumer packaged goods giant’s revenue has fallen in six out of the last eight quarters and its earnings outlook took a turn for the worse after it reported disappointing fourth quarter FY20 results on November 19.
Soggy Performance?
Post Holdings is a consumer packaged goods firm that operates five core businesses: Post Consumer, Weetabix, Foodservice, Refrigerated Retail, and BellRing. Overall, its offerings range from Honey Bunches of Oats cereal to potatoes, sausages, and more under the Bob Evans brand to PowerBar and beyond.
The firm’s largest segment is its Post Consumer Brands, which features its North American ready-to-eat cereal offerings. The unit accounted for roughly 34% of total 2020 revenue and it climbed roughly 4% on the year. This helped Post’s overall 2020 revenue pop 0.3%. Unfortunately, the firm’s marginal climb followed a 9% decline in FY19.
On top of that, Post fell short of both our Q4 revenue and earnings estimates. Post’s sales dipped over 2% and its adjusted EPS came in 60% below the year-ago figure and missed by over 20%. As we mentioned at the top, the company has now seen its sales decline in six out of the last eight quarters.
Other Fundamentals…
Post’s stock price reflects its recent lackluster performance. The stock is down around 9% since mid-November, with its shares having moved largely sideways over the last six months. At $94 a share, POST sits around 16% off its April 2019 highs. That said, the stock has still climbed by around 40% in the last five years to crush the broader food market’s slight decline.
Unfortunately, this falls well behind the S&P 500’s 80% expansion during this run. Post also doesn’t pay a dividend and its Food–Miscellaneous space sits in the bottom quarter of over 250 Zacks industries.
Zacks estimates call for the company’s adjusted first quarter FY21 earnings to slip 16% on 3% lower revenue. On top of that, Post’s earnings outlook has trended heavily in the wrong direction since its fourth quarter report on November 19, with its EPS consensus down 21% for this year and 16% for FY22.
Bottom Line
Post’s downward earnings revisions help it land a Zacks Rank #5 (Strong Sell) at the moment, alongside its “D” grade for momentum in our Style Scores system.
All that said, the company’s sales and earnings are projected to climb this year and next. Yet, it still might be best to stay away from Post until it shows some signs of a comeback, with it down 14% in the past 12 months and 9% since mid-November.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Bear of the Day: Post Holdings, Inc. (POST)
Post Holdings (POST - Free Report) is fighting to adapt to changing eating habits and broader consumer trends. The consumer packaged goods giant’s revenue has fallen in six out of the last eight quarters and its earnings outlook took a turn for the worse after it reported disappointing fourth quarter FY20 results on November 19.
Soggy Performance?
Post Holdings is a consumer packaged goods firm that operates five core businesses: Post Consumer, Weetabix, Foodservice, Refrigerated Retail, and BellRing. Overall, its offerings range from Honey Bunches of Oats cereal to potatoes, sausages, and more under the Bob Evans brand to PowerBar and beyond.
The firm’s largest segment is its Post Consumer Brands, which features its North American ready-to-eat cereal offerings. The unit accounted for roughly 34% of total 2020 revenue and it climbed roughly 4% on the year. This helped Post’s overall 2020 revenue pop 0.3%. Unfortunately, the firm’s marginal climb followed a 9% decline in FY19.
On top of that, Post fell short of both our Q4 revenue and earnings estimates. Post’s sales dipped over 2% and its adjusted EPS came in 60% below the year-ago figure and missed by over 20%. As we mentioned at the top, the company has now seen its sales decline in six out of the last eight quarters.
Other Fundamentals…
Post’s stock price reflects its recent lackluster performance. The stock is down around 9% since mid-November, with its shares having moved largely sideways over the last six months. At $94 a share, POST sits around 16% off its April 2019 highs. That said, the stock has still climbed by around 40% in the last five years to crush the broader food market’s slight decline.
Unfortunately, this falls well behind the S&P 500’s 80% expansion during this run. Post also doesn’t pay a dividend and its Food–Miscellaneous space sits in the bottom quarter of over 250 Zacks industries.
Zacks estimates call for the company’s adjusted first quarter FY21 earnings to slip 16% on 3% lower revenue. On top of that, Post’s earnings outlook has trended heavily in the wrong direction since its fourth quarter report on November 19, with its EPS consensus down 21% for this year and 16% for FY22.
Bottom Line
Post’s downward earnings revisions help it land a Zacks Rank #5 (Strong Sell) at the moment, alongside its “D” grade for momentum in our Style Scores system.
All that said, the company’s sales and earnings are projected to climb this year and next. Yet, it still might be best to stay away from Post until it shows some signs of a comeback, with it down 14% in the past 12 months and 9% since mid-November.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>