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Food Stocks' Earnings Lineup on Feb 3: HSY, HAIN & POST
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With the earnings season in focus again, a number of food companies are lined up to report results this week. Companies in the food space have been benefiting from favorable trends in the foodservice channel, thanks to improved traffic at restaurants, cafes and other foodservice locations. This has been boosting away-from-home demand for a number of food companies.
That being said, the retail channel has been seeing tough volume comparisons with the year-ago period’s significant demand. While lower than the year-ago period, at-home consumption remains elevated as a number of Americans have developed cooking and baking at home as a new habit. Food companies have been making the most of these trends on the back of their consistent portfolio refinement endeavors like focus on innovation, product upgrades, strategic acquisitions and divestitures. Companies have been expanding organic and natural food choices, given consumers’ growing inclination toward health and wellness.
Apart from this, growing online sales are likely to have worked in favor of a number of food companies, which have been focused on investing toward boosting omnichannel and fulfillment center capabilities. However, companies in the food industry have been grappling with escalating costs of inputs, freight and logistics, which along with a tough labor market has been putting pressure on margins. Some players have also been facing disruptions in the supply-chain network. Nonetheless, companies have been committed to undertaking necessary pricing actions, which may have offered some respite.
On that note, let’s take a closer look at some food stocks, which are slated to report results on Feb 3. These stocks form part of the Zacks Consumer Staples sector. Per the latest Earnings Preview, the total earnings of the Consumer Staples sector are anticipated to decline 0.8%, while revenues are expected to advance 11%. The Hershey Company (HSY - Free Report) , The Hain Celestial Group, Inc. (HAIN - Free Report) and Post Holdings, Inc. (POST - Free Report) are due to report earnings on Feb 3.
According to the Zacks model, 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.
Hershey is scheduled to report fourth-quarter 2021 earnings. This confectionery products and pantry items company has been gaining on favorable demand due to increased away-from-home consumption. Focus on innovation and prudent acquisitions have been adding to the company’s brand strength. Apart from this, strategic pricing initiatives have been working well amid elevated costs.
The Zacks Consensus Estimate for revenues is pegged at $2,265 million, suggesting a rise of 3.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for Hershey’s earnings has increased by 1.2% over the past 30 days to $1.63 per share, indicating a 9.4% jump from the figure reported in the prior-year period. HSY currently has a Zacks Rank #3 and an Earnings ESP of +0.61%. (Read More: Hershey Lined Up for Q4 Earnings: Key Factors to Note).
The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise
Hain Celestial’s second-quarter fiscal 2022 earnings are likely to have been impacted by high inflation, labor shortages, increased freight cost and major overlaps related to COVID-19. The supply-chain issues have been hurting its sourcing, internal manufacturing and distribution capabilities for a while, which in turn, are delaying shipments. On the flip side, Hain Celestial’s focus on the transformation strategy bodes well. This strategy aims to simplify its portfolio, identify the additional areas of productivity, drive the top line and improve its cash flow.
The consensus estimate for quarterly revenues stands at $480.2 million, indicating a decrease of 9.1% from the year-ago quarter’s actuals. The Zacks Consensus Estimate for Hain Celestial’s bottom line has declined 10.8% to 33 cents in the past 30 days, suggesting a dip of about 3% from the year-ago quarter’s figure. HAIN carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00% at present. (Read More: Things to Know Before Hain Celestial's Q2 Earnings).
Post Holdings, Inc. Price, Consensus and EPS Surprise
Post Holdings’ first-quarter 2022 top line is likely to have witnessed growth. The company has been battling 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 had highlighted that it expects the fiscal first quarter to be particularly impacted by lingering supply chain disruptions and price inflation.
On 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. The company has also been benefiting from its focus on prudent acquisitions. The Zacks Consensus Estimate for revenues is pegged at $1,636 million, which suggests an increase of 12.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 34 cents per share, suggesting a 52.8% slump from the prior-year quarter’s reported figure. Post Holdings currently carries a Zacks Rank #5 (Strong Sell) and has an Earnings ESP of +19.40%.
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Food Stocks' Earnings Lineup on Feb 3: HSY, HAIN & POST
With the earnings season in focus again, a number of food companies are lined up to report results this week. Companies in the food space have been benefiting from favorable trends in the foodservice channel, thanks to improved traffic at restaurants, cafes and other foodservice locations. This has been boosting away-from-home demand for a number of food companies.
That being said, the retail channel has been seeing tough volume comparisons with the year-ago period’s significant demand. While lower than the year-ago period, at-home consumption remains elevated as a number of Americans have developed cooking and baking at home as a new habit. Food companies have been making the most of these trends on the back of their consistent portfolio refinement endeavors like focus on innovation, product upgrades, strategic acquisitions and divestitures. Companies have been expanding organic and natural food choices, given consumers’ growing inclination toward health and wellness.
Apart from this, growing online sales are likely to have worked in favor of a number of food companies, which have been focused on investing toward boosting omnichannel and fulfillment center capabilities. However, companies in the food industry have been grappling with escalating costs of inputs, freight and logistics, which along with a tough labor market has been putting pressure on margins. Some players have also been facing disruptions in the supply-chain network. Nonetheless, companies have been committed to undertaking necessary pricing actions, which may have offered some respite.
On that note, let’s take a closer look at some food stocks, which are slated to report results on Feb 3. These stocks form part of the Zacks Consumer Staples sector. Per the latest Earnings Preview, the total earnings of the Consumer Staples sector are anticipated to decline 0.8%, while revenues are expected to advance 11%. The Hershey Company (HSY - Free Report) , The Hain Celestial Group, Inc. (HAIN - Free Report) and Post Holdings, Inc. (POST - Free Report) are due to report earnings on Feb 3.
According to the Zacks model, 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.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Hershey Company The Price, Consensus and EPS Surprise
Hershey Company The price-consensus-eps-surprise-chart | Hershey Company The Quote
What’s in the Cards for Hershey?
Hershey is scheduled to report fourth-quarter 2021 earnings. This confectionery products and pantry items company has been gaining on favorable demand due to increased away-from-home consumption. Focus on innovation and prudent acquisitions have been adding to the company’s brand strength. Apart from this, strategic pricing initiatives have been working well amid elevated costs.
The Zacks Consensus Estimate for revenues is pegged at $2,265 million, suggesting a rise of 3.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for Hershey’s earnings has increased by 1.2% over the past 30 days to $1.63 per share, indicating a 9.4% jump from the figure reported in the prior-year period. HSY currently has a Zacks Rank #3 and an Earnings ESP of +0.61%. (Read More: Hershey Lined Up for Q4 Earnings: Key Factors to Note).
The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise
The Hain Celestial Group, Inc. price-consensus-eps-surprise-chart | The Hain Celestial Group, Inc. Quote
Factors Likely to Impact Hain Celestial
Hain Celestial’s second-quarter fiscal 2022 earnings are likely to have been impacted by high inflation, labor shortages, increased freight cost and major overlaps related to COVID-19. The supply-chain issues have been hurting its sourcing, internal manufacturing and distribution capabilities for a while, which in turn, are delaying shipments. On the flip side, Hain Celestial’s focus on the transformation strategy bodes well. This strategy aims to simplify its portfolio, identify the additional areas of productivity, drive the top line and improve its cash flow.
The consensus estimate for quarterly revenues stands at $480.2 million, indicating a decrease of 9.1% from the year-ago quarter’s actuals. The Zacks Consensus Estimate for Hain Celestial’s bottom line has declined 10.8% to 33 cents in the past 30 days, suggesting a dip of about 3% from the year-ago quarter’s figure. HAIN carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00% at present. (Read More: Things to Know Before Hain Celestial's Q2 Earnings).
Post Holdings, Inc. Price, Consensus and EPS Surprise
Post Holdings, Inc. price-consensus-eps-surprise-chart | Post Holdings, Inc. Quote
What Awaits Post Holdings?
Post Holdings’ first-quarter 2022 top line is likely to have witnessed growth. The company has been battling 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 had highlighted that it expects the fiscal first quarter to be particularly impacted by lingering supply chain disruptions and price inflation.
On 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. The company has also been benefiting from its focus on prudent acquisitions. The Zacks Consensus Estimate for revenues is pegged at $1,636 million, which suggests an increase of 12.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 34 cents per share, suggesting a 52.8% slump from the prior-year quarter’s reported figure. Post Holdings currently carries a Zacks Rank #5 (Strong Sell) and has an Earnings ESP of +19.40%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.