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Factors to Watch Ahead of Post Holdings' (POST) Q1 Earnings

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Post Holdings, Inc. (POST - Free Report) is likely to report a decline in both top and bottom lines when it releases first-quarter fiscal 2021 numbers on Feb 4, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at approximately $1,417 million, which suggests a decline of 2.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at 64 cents per share, which indicates a drop of 15.8% from the year-ago quarter’s reported figure. Post Holdings’ bottom line has lagged the Zacks Consensus Estimate by 21.6% in the last reported quarter and it has a trailing four-quarter negative earnings surprise of 17.9%, on average.

Post Holdings, Inc. Price, Consensus and EPS Surprise

Post Holdings, Inc. Price, Consensus and EPS Surprise

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

Key Factors to Note

Post Holdings’ Foodservice segment has been bearing the brunt of soft demand due to the pandemic. The segment witnessed lower sales and volumes in the last reported quarter due to reduced away-from-home demand amid COVID-19 in various foodservice channels like full-service restaurants, quick-service restaurants, lodging, education and travel. Continuation of such trends amid the pandemic remains a concern.  The Zacks Consensus Estimate for first-quarter sales in the Foodservice segment is currently pegged at $331 million compared with $421 million recorded in the year-ago period.

Nevertheless, the company’s Weetabix segment has been performing well over the past few quarters. During fourth-quarter fiscal 2020, volumes grew in the segment on gains from extruded products and biscuit products. The consensus mark for Weetabix segment sales stands at $107 million for the quarter under review compared with $102 million reported in the same period last year. Certainly, the company has been benefiting from the buyouts of Bob Evans (January 2018) and Weetabix (July 2017), to name a few. However, the company has been witnessing strained gross margins for a while now.

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 currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

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

Newell Brands (NWL - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Monster Beverage (MNST - Free Report) has an Earnings ESP of +21.81% and a Zacks Rank #3, at present.

Estee Lauder (EL - Free Report) currently has an Earnings ESP of +1.69% and a Zacks Rank #3.

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