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Here's How Post Holdings (POST) Looks Ahead of Q3 Earnings

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Post Holdings, Inc. (POST - Free Report) is likely to register a decline in the top and the bottom line when it reports third-quarter fiscal 2020 results on Aug 6. In fact, the Zacks Consensus Estimate for fiscal third-quarter earnings has declined 19.3% in the past 30 days to 67 cents per share. The projection suggests a fall of 43.7% from the figure reported in the year-ago quarter. Moreover, the consensus estimate of $1.35 billion as quarterly revenues suggests a decline of 6.3% from the prior-year quarter’s tally.

The company reported a negative earnings surprise of 28.6% in the last reported quarter.

Post Holdings, Inc. Price and EPS Surprise

Post Holdings, Inc. Price and EPS Surprise

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

Key Factors to Note

Post Holdings is witnessing reduced demand from foodservice customers like restaurants, education institutions and lodging among others due to coronavirus-led restrictions. Apart from this, the company is witnessing increasing SG&A expenses, which is concerning.

Nevertheless, Post Holdings is witnessing a spike in demand for the products that are sold online as well as through food, drug and mass channels owing to coronavirus -led stockpiling and higher at-home consumption. Also, the company is benefiting from contributions from its acquisitions. In this regard, its acquisition of Weetabix Limited (July 2017) is yielding results.

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 carries a Zacks Rank #3 and an Earnings ESP of -3.35%.

Stocks With Favorable Combination

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

Nu Skin (NUS - Free Report) currently has an Earnings ESP of +6.35% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Flowers Foods (FLO - Free Report) currently has an Earnings ESP of +4.49% and a Zacks Rank of 2.

Estee Lauder (EL - Free Report) has an Earnings ESP of +7.28% and a Zacks Rank #3.

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