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Post Holdings, Inc. POST is likely to register top- and bottom-line growth when it reports second-quarter fiscal 2023 earnings results on May 4, after market close. The Zacks Consensus Estimate for revenues is pegged at $1,557 million, indicating growth of 10.5% 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 second-quarter earnings per share has moved up 1 cent to 68 cents over the past 30 days, suggesting a sharp improvement of 183.3% from the year-ago period.
Post Holdings has a trailing four-quarter earnings surprise of 34.8%, on average. In the last reported quarter, this Saint Louis, MO-based company delivered a positive earnings surprise of 86.2%.
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 second-quarter sales at the Foodservice segment is pegged at $577 million, suggesting an increase of 27.7% year over year. The consensus estimate for the Refrigerated Retail and Post Consumer Brands segments is currently pegged at $274 million and $604 million, suggesting an increase of 2.2% and 5.4%, respectively, from the year-ago period.
The consensus estimate for sales at the Weetabix segment is pegged at $110 million, suggesting a decline of 6% year over year. Post Holdings witnessed a dismal performance at the Weetabix segment in the first quarter of fiscal 2023 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 fulfilment rates lower than optimal levels. The company faces higher input and freight costs.
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.
Post Holdings sports a Zacks Rank #1 and has an Earnings ESP of +2.94% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.