Factors Likely to Influence Post Holdings' (POST) Q3 Earnings
Post Holdings, Inc. POST is likely to register top and bottom-line growth when it reports third-quarter fiscal 2023 earnings results on Aug 3, after market close. The Zacks Consensus Estimate for revenues is pegged at $1,819 million, indicating growth of 19.3% 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 fiscal third-quarter earnings per share has moved up by a penny to 89 cents over the past 30 days, suggesting an increase of 29% from the year-ago period’s actual.
Post Holdings has a trailing four-quarter earnings surprise of 46.7%, on average. In the last reported quarter, this Saint Louis, MO-based company delivered an earnings surprise of 61.8%.
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 experienced the advantages of strategic pricing actions and growth in its foodservice business in the to-be-reported quarter. Additionally, the company's prudent acquisitions have been contributing to its success by enabling the expansion of its customer base.
On Apr 28, 2023, Post Holdings completed the acquisition of a select pet food brand from The J.M. Smucker Co. This acquisition provided Post Holdings with a compelling entry point into the attractive and growing pet food category. The company is also likely to have gained from its refrigerated retail and Post consumer brands segments in the quarter under discussion.
We note that the Zacks Consensus Estimate for fiscal third-quarter sales at the Foodservice segment is pegged at $594 million, suggesting a year-over-year increase of 2.6%. The consensus estimate for the Refrigerated Retail and Post Consumer Brands segments is pegged at $258 million and $755 million, suggesting year-over-year increases of 4.9% and 31.3%, respectively.
The consensus estimate for sales at the Weetabix segment is pegged at $125 million, suggesting no year-over-year changes. Post Holdings witnessed a dismal performance at the Weetabix segment in the second quarter of fiscal 2023 due to the foreign currency exchange rate headwind.
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 hike manufacturing costs and lower customer order fulfillment rates than optimal levels. Notably, the company has been facing higher input and freight costs.
What the Zacks Model Unveils
Our proven model does not 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 chances of an earnings beat, which is not the case here.
Post Holdings has a Zacks Rank #2 and an Earnings ESP of -26.97% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Celsius CELH currently has an Earnings ESP of +50.64% and a Zacks Rank #2. CELH is likely to register top-line growth when it reports second-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $278.9 million, which suggests growth of 81.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, the Zacks Consensus Estimate for Celsius’ quarterly earnings has been unchanged in the past 30 days at 31 cents per share, suggesting growth of 158.3% from the year-ago quarter’s reported number. CELH delivered an Earnings ESP of +81.8% in the last reported quarter.
Kellogg’s K has an Earnings ESP of +1.92% and a Zacks Rank #3 at present. The company is expected to report second-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.05 billion, which suggests growth of 4.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg’s quarterly earnings has been unchanged in the past 30 days to $1.11 per share, suggesting a decline of 5.9% from the year-ago quarter’s reported number. K has a trailing four-quarter earnings surprise of 9.6%, on average.
Lamb Weston LW has an Earnings ESP of +1.32% and a Zacks Rank #3 at present. The company is slated to report first-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.54 billion, which indicates growth of 36.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Lamb Weston’s quarterly earnings has moved down a penny in the past seven days to $1.10 per share, suggesting growth of 46.7% from the year-ago quarter’s reported number. LW has a trailing four-quarter earnings surprise of 44.8%, on average.
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Kellogg Company (K) : Free Stock Analysis Report
Post Holdings, Inc. (POST) : Free Stock Analysis Report
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Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
