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Post Holdings (POST) Queued for Q1 Earnings: Things to Note

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Post Holdings, Inc. (POST - Free Report) is likely to witness growth in the top line when it reports first-quarter 2022 numbers on Feb 3. The Zacks Consensus Estimate for revenues is pegged at $1,636 million, suggesting an increase of 12.2% from the prior-year quarter’s reported figure.

Post Holdings’ bottom line is likely to decline year over year in the first quarter. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 34 cents per share. The projection suggests a 52.8% slump from the prior-year quarter’s reported figure. The consumer packaged goods company has a trailing four-quarter negative earnings surprise of 20%, on average. Post Holdings registered a negative earnings surprise of 44.3% in the last reported quarter.

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

 

Things To Note

Post Holdings has been facing challenges related to labor shortages, input and freight inflation as well as other supply chain disruptions like input availability. These headwinds are exerting pressure on its supply chains across all segments, which are affecting sales and increasing manufacturing costs. In the last earnings release, management highlighted that it expects the fiscal first quarter to be impacted by persistent supply chain disruptions and price inflation.

In its last earnings call, management stated that it anticipates a sequential decline in the foodservice platform thanks to persistent labor shortages and non-pass through inflation. That said, Post Holdings’ Refrigerated Retail segment is likely to have witnessed sequential improvement in the quarter under review. The company is also benefiting from its focus on prudent acquisitions. In this regard, its Private label ready-to-eat (PL RTE) cereal business, Egg Beaters liquid egg brand, Almark Foods business and related assets as well as Peter Pan nut butter brand acquisitions are yielding.

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 #5 (Strong Sell) and has an Earnings ESP of +19.40%.

Some Stocks With Favorable Combinations

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

Hershey (HSY - Free Report) currently has an Earnings ESP of +0.61% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up by a couple of cents in the past 30 days to $1.63 per share, calling for a 9.4% rise from the year-ago quarter’s reported number.

Hershey’s top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.3 billion, suggesting a rise of 3.7% from the figure reported in the prior-year quarter. HSY delivered an earnings beat of 4.4%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Coty Inc. (COTY - Free Report) currently has an Earnings ESP of +37.14% and a Zacks Rank #3. COTY is anticipated to register top-line growth when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.6 billion, indicating an improvement of 13.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Coty’s bottom line has remained unchanged in the past 30 days at 12 cents per share. However, the consensus estimate for earnings suggests a decline of 29.4% from the year-ago quarter’s reported figure. COTY delivered an earnings beat of 66.4%, on average, in the trailing four quarters.

Service Corporation International (SCI - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #3. Service Corporation is anticipated to register growth in the top line and a bottom-line decline when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01billion, indicating a rise of 4.3% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Service Corporation’s bottom line has increased 11.1% in the past 30 days to $1.00 per share. The consensus estimate suggests a drop of 11.5% from the year-ago quarter’s reported figure. SCI has delivered an earnings beat of 45.6%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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