Post Holdings (POST) Announces Preliminary Results for Q4
Post Holdings, Inc. POST yesterday provided preliminary results for fourth-quarter fiscal 2023 and issued an outlook for fiscal 2024. The company expects to have ended fourth-quarter fiscal 2023 on a strong note with a solid improvement in net sales and adjusted EBITDA, driven by strength in its businesses.
Inside the Headlines
For fourth-quarter fiscal 2023, Post Holdings anticipates net sales of about $1.9 billion, suggesting growth of about 18.8% and 2% on a year-over-year and sequential basis, respectively. For the fiscal fourth quarter, it expects an adjusted EBITDA of about $349 million, higher than $279.7 million reported in the year-ago quarter. The metric, as a percentage of preliminary net sales, is anticipated to be 17.9%. Its net interest expense is expected to be $76.7 million.
The company believes that its quarterly results are likely to have been driven by strength in its cereal and pet food segments within Post Consumer Brands and its strong performance in the Foodservice business. POST also noted that solid price realization, improvements in the supply chain within retail channels and solid momentum in its acquired pet food business are likely to have augmented results.
For fiscal 2024, POST envisions adjusted EBITDA in the range of $1,200-1,260 million compared with $963.5 million in the previous fiscal year. This outlook excludes any contribution from the company’s pending acquisition of Perfection Pet Foods, LLC. The buyout is likely to be closed late in the first quarter of fiscal 2024, subject to certain closing conditions.
The company is expected to release its financial results for fourth-quarter fiscal 2023 after market close on Nov 16, 2023.
Zacks Rank and Price Performance
Post Holdings, with a market capitalization of $5.1 billion, currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from strength in Post Consumer Brands, Weetabix and Foodservice segments. This consumer-packaged goods company has been expanding through acquisitions to diversify its business. However, rising operating costs and expenses remain a concern.
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In the past three months, its shares have lost 4.1% compared with the industry’s decline of 10.4%.
Stocks to Consider
Some better-ranked stocks from the same space are Lamb Weston Holdings, Inc. LW, Celsius Holdings, Inc. CELH and Flowers Foods, Inc. FLO.
Lamb Weston offers frozen potato products and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LW delivered an average earnings surprise of 46.2% in the trailing four quarters. The Zacks Consensus Estimate for Lamb Weston’s current financial year sales and earnings suggests growth of 28.3% and 24.8%, respectively, from the year-ago reported numbers.
Celsius Holdings, which offers functional drinks and liquid supplements, currently carries a Zacks Rank #2 (Buy). CELH delivered an earnings surprise of 100% in the last reported quarter.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings suggests growth of 91.2% and 170.3%, respectively, from the year-ago reported numbers.
Flowers Foods emphasizes providing high-quality baked items. The company currently carries a Zacks Rank #2. FLO has a trailing four-quarter earnings surprise of 7.6% on average.
The Zacks Consensus Estimate for Flowers Foods’ current financial year sales suggests growth of 6.7% from the year-ago reported number.
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