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Factors Likely to Influence Post Holdings' (POST) Q1 Earnings

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Post Holdings, Inc. (POST - Free Report) is likely to register a decline in the top line when it reports first-quarter fiscal 2023 earnings results on Feb 2 after market close. The Zacks Consensus Estimate for revenues is pegged at $1,483 million, indicating a decline of 9.8% from the prior-year reported figure.

The bottom line of this consumer-packaged goods holding company is expected to increase year over year. The Zacks Consensus Estimate for first-quarter earnings per share has been stable at 58 cents over the past 30 days and suggests a sharp improvement from the 29 cents reported in the year-ago period.

Post Holdings has a trailing four-quarter earnings surprise of 9.6%, on average. In the last reported quarter, this Saint Louis, MO-based company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 19.7%.

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 is likely to have benefited from strategic pricing actions and strength across the Foodservice business. The company has also been gaining from its prudent acquisitions. These have been helping it expand the customer base.

We note that the Zacks Consensus Estimate for first-quarter sales at the Foodservice segment is pegged at $521 million, suggesting an increase of 18.8% year over year. The consensus estimate for the Refrigerated Retail and Post Consumer Brands segments currently stands at $281 million and $545 million, suggesting an increase of 2.8% and 7.4%, respectively, from the year-ago period.

The consensus estimate for sales at the Weetabix segment is pegged at $105 million, suggesting a decline of 11.5% year over year. Post Holdings witnessed a dismal performance at the Weetabix segment in the fourth quarter of fiscal 2022 due to the foreign currency exchange rate headwind and declines in branded products.

Thus, Post Holdings is not immune to inflationary pressure and supply chain-related issues. Although supply-chain headwinds have eased a little, the same continued to drive higher manufacturing costs and customer order fulfillment rates lower than optimal levels. The company faces higher input and freight costs. Also, any pullback from away-from-home consumption may hit demand.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Post Holdings this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Post Holdings sports a Zacks Rank #1 and has an Earnings ESP of +8.16%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

3 More Stocks With the Favorable Combination

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

BJ's Wholesale Club (BJ - Free Report) currently has an Earnings ESP of +18.48% and a Zacks Rank #1. The company is likely to register a bottom-line improvement when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 88 cents suggests an improvement from the 80 cents reported in the year-ago quarter.

BJ's Wholesale Club's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.90 billion, which indicates an increase of 12.5% from the figure reported in the prior-year quarter. BJ's Wholesale Club has a trailing four-quarter earnings surprise of 18.2%, on average.

Performance Food Group Company (PFGC - Free Report) currently has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 76 cents suggests an increase from the 57 cents reported in the year-ago quarter.

Performance Food Group Company's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $13.91 billion, indicating an increase of 8.4% from the figure reported in the year-ago quarter. PFGC has a trailing four-quarter earnings surprise of 15.2%, on average.

Kellogg (K - Free Report) currently has an Earnings ESP of +3.39% and a Zacks Rank of 3. Kellogg is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers.

The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.65 billion, calling for growth of 6.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. Kellogg has a trailing four-quarter earnings surprise of 10.6%, on average.

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

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