Post Holdings, maker of Raisin Bran, Grape-Nuts and Shredded Wheat cereals, is getting a nutritional reality check from Wall Street on Friday.
The company’s shares are down 18 percent a day after it posted an unexpected loss of 30 cents on just-as-expected sales of $633 million in its fiscal third quarter. Wall Street was looking for a profit of 27 cents per share. The loss was punctuated by lowered guidance for the fiscal year.
Despite the stock’s cliff dive, traders on StockTwits believe Post may have bottomed out around the 10 a.m. EDT hour, and are looking for ways to slurp up a quick profit. Post fell all the way to $32.87, a new 52-week low, during Friday trading.
Many investors take issue with the cereal company’s aggressive acquisition strategy, which hurt Post’s bottom-line in particular this past quarter with its completed acquisition of Michael Foods.
Post has acquired a handful companies in the past year-and-a-half. Thursday, it announced yet another deal, this time buying American Blanching Company for $128 million in stock to make its existing Golden Boy Foods peanut butter business even stickier.
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