Post Holdings, Inc. (POST) is likely to register a decline in both top and bottom lines when it reports second-quarter fiscal 2025 earnings on May 8. The Zacks Consensus Estimate for revenues is pegged at almost $2 billion, implying a 1.1% decrease from the prior-year quarter’s reported figure. However, the consensus mark for earnings has moved down a penny in the past seven days to $1.18 per share, indicating a decline of 21.9% from the figure reported in the year-ago quarter. POST delivered a trailing fou ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Post Holdings (POST) , which belongs to the Zacks Food - Miscellaneous industry.This cereal maker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 22.34%.For the last reported quarter, Post Holdings came out with earnings of $1.73 per share versus the ...

Core Viewpoint - Post Holdings, Inc. will hold a conference call on May 9, 2025, to discuss its financial results for Q2 of fiscal year 2025 and provide an outlook for the fiscal year 2025 [1][2]. Group 1: Conference Call Details - The conference call is scheduled for May 9, 2025, at 9:00 a.m. ET [1]. - Financial results for Q2 will be released after market close on May 8, 2025 [2]. - Interested parties can join the call by dialing (800) 445-7795 in the U.S. or (785) 424-1699 internationally, using conference ID POSTQ225 [2]. Group 2: Replay Information - A replay of the conference call will be available until May 16, 2025, by dialing (800) 753-6121 in the U.S. or (402) 220-2676 internationally [3]. - A webcast replay will also be accessible for a limited time on Post's website [3]. Group 3: Company Overview - Post Holdings, Inc. is a consumer packaged goods holding company based in St. Louis, Missouri, with operations in various food categories [4]. - The company includes brands such as Post Consumer Brands, Weetabix, Michael Foods, and Bob Evans Farms, focusing on ready-to-eat cereals, pet food, and refrigerated foods [4]. - Post is involved in the private brand food category through its investment in 8th Avenue Food & Provisions, Inc. [4].

Post Holdings, Inc. (POST) is trading at $114.82 (as of April 16, 2025), positioning itself firmly above the 50 and 200-day simple moving averages (SMA) of $113.63 and $112.59, respectively. This upward trajectory highlights the stock’s strong momentum and price stability, signaling positive investor sentiment. As POST continues to outperform key technical benchmarks, investors are now evaluating their next move: should they take profits, increase their positions or hold existing shares?POST 50 and 200-day ...

Post Holdings, Inc. (POST) is shutting down two of its cereal manufacturing plants — one in Cobourg, Ontario, and the other in Sparks, Nevada — by the end of 2025. This strategic decision comes as the demand for ready-to-eat cereal continues to decline, prompting the company to cut excess production capacity and streamline operations. The closures may impact roughly 300 employees.Post Holdings plans to transfer production to other facilities within its Post Consumer Brands network. The move is aimed at impr ...

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1]. Group 1 - The investment strategy is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1].

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [3][4] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score focuses on a stock's future prospects and financial health, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score helps investors capitalize on price trends, using factors like one-week price change and monthly earnings estimate changes [6] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best value, growth, and momentum characteristics [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41%, significantly outperforming the S&P 500 [9] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [11] - Stocks with lower ranks but high Style Scores may still pose risks due to downward earnings forecasts [12] Company Spotlight: Post Holdings - Post Holdings is a consumer-packaged goods holding company involved in various food categories and has a Zacks Rank of 2 (Buy) with a VGM Score of A [13] - The company has a Momentum Style Score of B, with shares increasing by 6.2% over the past four weeks and a consensus earnings estimate of $6.41 per share for fiscal 2025 [14]

Core Viewpoint - Post Holdings (POST) is identified as a strong value stock with a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is likely undervalued in the current market [3][7]. Valuation Metrics - The Price-to-Book (P/B) ratio for POST is 1.66, which is lower than the industry average of 1.96, suggesting a solid valuation compared to peers [4]. - The Price-to-Sales (P/S) ratio for POST stands at 0.81, compared to the industry's average of 0.97, indicating that POST may be undervalued based on sales performance [5]. - The Price-to-Cash Flow (P/CF) ratio for POST is 8.29, significantly lower than the industry average of 16.10, further supporting the notion that POST is undervalued [6]. Earnings Outlook - The strength of POST's earnings outlook, combined with its favorable valuation metrics, positions it as an impressive value stock at the moment [7].

Core Viewpoint - Post Holdings (POST) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, making it a valuable tool for investors [2][3]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [3]. Company Performance Indicators - For the fiscal year ending September 2025, Post Holdings is projected to earn $6.38 per share, reflecting a year-over-year increase of 1.8% [7]. - Over the past three months, the Zacks Consensus Estimate for Post Holdings has risen by 3.1%, indicating a positive trend in earnings expectations [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of Post Holdings to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

Financial Data and Key Metrics Changes - First quarter consolidated net sales were $2 billion and adjusted EBITDA was $370 million, with net sales flat to the prior year including acquisitions [22] - Excluding acquisitions, sales decreased by 2% due to lower overall volumes in retail businesses, partially offset by volume growth in food service driven by elevated avian influenza pricing [22][23] - Adjusted EBITDA increased by 8% versus prior years, benefiting from strong manufacturing and supply chain cost performance [25] Business Line Data and Key Metrics Changes - Pet category consumption was down approximately 1%, with the portfolio declining by 5% due to lost distribution points in Nutrish and price elasticity in Gravy Train [10] - Foodservice net sales increased by 9% and volumes increased by 3%, driven by favorable volumes and elevated pricing [25] - Refrigerated retail net sales decreased by 5% and volumes decreased by 4%, with adjusted EBITDA down 22% primarily due to lower side dish volumes and increased manufacturing costs [27] Market Data and Key Metrics Changes - The cereal category volume declined by 3.2%, slightly more than planned assumptions, while the overall share was down slightly [10] - The macro environment remained challenging with continued pressure on consumer spending, impacting collective volumes across the sector [19] - The company estimates a cost headwind in the range of $30 million to $50 million for fiscal Q2 due to avian influenza impacts [14] Company Strategy and Development Direction - The company is focusing on innovation in the Pet segment, with a relaunch of Nutrish and new product launches in Nature's Recipe and Kibbles and Bits [11] - Capital allocation has prioritized share repurchase, buying back over 4% of shares while maintaining net leverage flat [21] - The company remains open to M&A opportunities, indicating a robust pipeline of potential transactions [20][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current landscape despite unprecedented market price volatility [14] - The company anticipates challenges in sourcing and costs due to avian influenza but believes it can recover costs in the balance of the fiscal year [14][15] - Management noted that the macro environment is uncertain due to new administration policies, impacting consumer behavior [19][70] Other Important Information - The company successfully executed major ERP conversions at PCB, PET, and Weetabix during the quarter, which was a significant achievement [8] - The company raised the bottom end of its FY 2025 adjusted EBITDA guidance by $10 million, reflecting better-than-expected Q1 performance [31][68] Q&A Session Summary Question: Will Post consider larger scale M&A deals given current valuations? - Management indicated that they expect increased M&A activity and are well-positioned to consider both large and small opportunities despite recent share buybacks [36][39] Question: What is the outlook for demand in foodservice? - Management believes recovery in foodservice is self-contained and not reliant on overperformance in other segments, with a focus on improving margins through efficiency [54][55] Question: What are the risks associated with avian influenza? - Management highlighted that risks include the ability to procure eggs, pricing, and the ability to pass costs onto customers, with significant variability expected [72][74] Question: How is the company navigating the egg business amidst volatility? - Management stated that while volatility exists, the long-term growth trend remains strong, and they are focused on liquid egg business improvements rather than expanding into shell eggs [101][106] Question: What is the outlook for the cereal category? - Management acknowledged challenges in the cereal category but is exploring innovation and value chain strategies to improve performance [110][111]