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Based in Missouri, Post Holdings, Inc. (POST - Free Report) is a consumer-packaged goods giant, with many popular ready-to-eat cereal brands like Honey Bunches of Oats, Pebbles, Raisin Bran, Shredded Wheat, and Oreo O’s under its umbrella.
Q4 Earnings Recap
Last November, Post reported fourth quarter results that came in weaker-than-expected.
Earnings of $0.58 per share missed the Zacks Consensus Estimate; revenue of $1.4 billion fell 2.2% year-over-year and also missed our consensus estimate.
The company’s Foodservice and Post Consumer Brands operating segments saw notable declines over the prior year period, while BellRing Brands, Weetabix, and Refrigerated Retail grew year-over-year.
Looking ahead, Post’s management team expects adjusted EBITDA for the first half of 2021 to be in the range of $520 million and $550 million.
Bottom Line
POST is now a Zacks Rank #5 (Strong Sell).
Four analysts have cut their full year earnings outlook over the past 60 days, and the consensus estimate has fallen 58 cents to $3.73 per share; earnings are expected to experience a double-digit decline for fiscal 2020. Post reports Q1 results in a few weeks, so investors should be aware that these figures could change.
Shares are down 11.8% in the past one-year period, lagging the S&P 500’s 14% rebound during the same time frame.
Post faces some tough headwinds going forward.
Competition from fellow cereal makers Kellogg (K - Free Report) and General Mills (GIS - Free Report) has only grown, and Post will likely have a hard time gaining significant market share as the demand for cereal by consumers remains at a stand still.
Long-term debt has also ballooned over the past ten years to $6.9 billion due to high acquisition activity, and with stagnant revenues and an unclear path to growing future earnings, it may be best for potential investors to stay on the sidelines for now.
Investors who are interested in adding a similar consumer staples stock to their portfolio could consider natural and organic food manufacturer Hain Celestial Group (HAIN - Free Report) . HAIN is a #1 (Strong Buy) on the Zacks Rank, and earnings are expected to grow over 50% for the current fiscal year.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Bear of the Day: Post Holdings (POST)
Based in Missouri, Post Holdings, Inc. (POST - Free Report) is a consumer-packaged goods giant, with many popular ready-to-eat cereal brands like Honey Bunches of Oats, Pebbles, Raisin Bran, Shredded Wheat, and Oreo O’s under its umbrella.
Q4 Earnings Recap
Last November, Post reported fourth quarter results that came in weaker-than-expected.
Earnings of $0.58 per share missed the Zacks Consensus Estimate; revenue of $1.4 billion fell 2.2% year-over-year and also missed our consensus estimate.
The company’s Foodservice and Post Consumer Brands operating segments saw notable declines over the prior year period, while BellRing Brands, Weetabix, and Refrigerated Retail grew year-over-year.
Looking ahead, Post’s management team expects adjusted EBITDA for the first half of 2021 to be in the range of $520 million and $550 million.
Bottom Line
POST is now a Zacks Rank #5 (Strong Sell).
Four analysts have cut their full year earnings outlook over the past 60 days, and the consensus estimate has fallen 58 cents to $3.73 per share; earnings are expected to experience a double-digit decline for fiscal 2020. Post reports Q1 results in a few weeks, so investors should be aware that these figures could change.
Shares are down 11.8% in the past one-year period, lagging the S&P 500’s 14% rebound during the same time frame.
Post faces some tough headwinds going forward.
Competition from fellow cereal makers Kellogg (K - Free Report) and General Mills (GIS - Free Report) has only grown, and Post will likely have a hard time gaining significant market share as the demand for cereal by consumers remains at a stand still.
Long-term debt has also ballooned over the past ten years to $6.9 billion due to high acquisition activity, and with stagnant revenues and an unclear path to growing future earnings, it may be best for potential investors to stay on the sidelines for now.
Investors who are interested in adding a similar consumer staples stock to their portfolio could consider natural and organic food manufacturer Hain Celestial Group (HAIN - Free Report) . HAIN is a #1 (Strong Buy) on the Zacks Rank, and earnings are expected to grow over 50% for the current fiscal year.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>