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Food Stocks to Watch for Earnings on Feb 2: INGR & POST
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The Q4 earnings season has so far seen quarterly releases from 25% of the consumer staples companies in the S&P 500 cohort. According to the latest Earnings Preview, 50% of the companies have surpassed earnings and 37.5% have beat revenue expectations. Total earnings at these consumer staples companies increased 1.4% on 3.9% decline in revenues.
Two of the most important companies -- General Mills Inc. (GIS - Free Report) and The Procter & Gamble Company (PG - Free Report) -- in the sector have already released their quarterly numbers. General Mills’ second-quarter fiscal 2017 adjusted earnings and revenue missed the Zacks Consensus Estimate by 3.4% and 2.4%, respectively. Procter & Gamble’s second-quarter fiscal 2017 earnings and revenues exceeded expectations by a respective 1.9% and 0.3%.
Coming to the food industry within the consumer staples sector, the industry has seen sluggish growth and slowdown in consumption over the last few quarters. The industry is experiencing changes in consumer preference (for example, a shift toward products with less artificial sweeteners, sodium and saturated fat), changes in consumer dynamics (such as increased need for portable and on-the-go products), demographic shifts and also a spending shift toward lower-priced products.
Given this backdrop, let’s try to determine how these players – Ingredion Incorporated (INGR - Free Report) and Post Holdings, Inc. (POST - Free Report) – are placed ahead of their earnings release on Feb 2.
Ingredion Incorporated, an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients, is scheduled to report fourth-quarter 2016 results, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 12%. The company surpassed estimates in all of the past four quarters and has an average positive surprise of 10.5%.
Our proven model does not conclusively show that Ingredion is likely to beat earnings this quarter. Per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 (Hold) to beat earnings.
For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $1.63, up 14.8% year over year. Meanwhile, the consensus estimate for revenues is at $1.37 billion, reflecting a 2.2% decrease.
Post Holdings, a manufacturer, marketer and distributor of branded ready-to-eat cereals, is scheduled to report first-quarter fiscal 2017 results, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 41.9%. The company surpassed estimates in all of the past four quarters and has an average positive surprise of 69.8%.
Currently, the company has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 54 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Thus, our model does not conclusively show an earnings beat for Post Holdings this quarter.
For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 54 cents, up 3.4% year over year. Meanwhile, the consensus estimate for revenues is $1.23 billion, reflecting a 1.5% decrease.
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Food Stocks to Watch for Earnings on Feb 2: INGR & POST
The Q4 earnings season has so far seen quarterly releases from 25% of the consumer staples companies in the S&P 500 cohort. According to the latest Earnings Preview, 50% of the companies have surpassed earnings and 37.5% have beat revenue expectations. Total earnings at these consumer staples companies increased 1.4% on 3.9% decline in revenues.
Two of the most important companies -- General Mills Inc. (GIS - Free Report) and The Procter & Gamble Company (PG - Free Report) -- in the sector have already released their quarterly numbers. General Mills’ second-quarter fiscal 2017 adjusted earnings and revenue missed the Zacks Consensus Estimate by 3.4% and 2.4%, respectively. Procter & Gamble’s second-quarter fiscal 2017 earnings and revenues exceeded expectations by a respective 1.9% and 0.3%.
Another major player in the same space, The Hershey Company (HSY - Free Report) , is set to report fourth-quarter 2016 results on Feb 3, before the opening bell (read more: Can Hershey Spring a Surprise this Earnings Season?)
Coming to the food industry within the consumer staples sector, the industry has seen sluggish growth and slowdown in consumption over the last few quarters. The industry is experiencing changes in consumer preference (for example, a shift toward products with less artificial sweeteners, sodium and saturated fat), changes in consumer dynamics (such as increased need for portable and on-the-go products), demographic shifts and also a spending shift toward lower-priced products.
Given this backdrop, let’s try to determine how these players – Ingredion Incorporated (INGR - Free Report) and Post Holdings, Inc. (POST - Free Report) – are placed ahead of their earnings release on Feb 2.
Ingredion Incorporated, an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients, is scheduled to report fourth-quarter 2016 results, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 12%. The company surpassed estimates in all of the past four quarters and has an average positive surprise of 10.5%.
Currently, the company has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.63. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ingredion Incorporated Price and EPS Surprise
Ingredion Incorporated Price and EPS Surprise | Ingredion Incorporated Quote
Our proven model does not conclusively show that Ingredion is likely to beat earnings this quarter. Per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 (Hold) to beat earnings.
For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $1.63, up 14.8% year over year. Meanwhile, the consensus estimate for revenues is at $1.37 billion, reflecting a 2.2% decrease.
Post Holdings, a manufacturer, marketer and distributor of branded ready-to-eat cereals, is scheduled to report first-quarter fiscal 2017 results, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 41.9%. The company surpassed estimates in all of the past four quarters and has an average positive surprise of 69.8%.
Currently, the company has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 54 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Post Holdings, Inc. Price and EPS Surprise
Post Holdings, Inc. Price and EPS Surprise | Post Holdings, Inc. Quote
Thus, our model does not conclusively show an earnings beat for Post Holdings this quarter.
For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 54 cents, up 3.4% year over year. Meanwhile, the consensus estimate for revenues is $1.23 billion, reflecting a 1.5% decrease.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>