Post Earnings: What To Look For From POST

Anthony Lee /
2024/01/31 2:01 am EST

Packaged foods company Post (NYSE:POST) will be reporting results tomorrow after the bell. Here's what investors should know.

Last quarter Post reported revenues of $1.95 billion, up 23.2% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a decent beat of analysts' earnings estimates. On the other hand, its operating margin and adjusted EBITDA missed analysts' expectations and it continued to show declines in its sales volumes.

Is Post buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Post's revenue to grow 22.6% year on year to $1.92 billion, improving on the 17.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.10 per share.

Post Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.1%.

Looking at Post's peers in the packaged food segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Simply Good Foods delivered top-line growth of 2.6% year on year, missing analyst estimates by 0.2% and Lamb Weston reported revenues up 35.7% year on year, exceeding estimates by 1.9%. Simply Good Foods traded up 1.4% on the results, Lamb Weston was down 1.4%.

Read our full analysis of Simply Good Foods's results here and Lamb Weston's results here.

Stocks have faced challenges as investors prioritize near-term cash flows and while some of the packaged food stocks have fared somewhat better, they have not been spared, with share price declining 2.5% over the last month. Post is up 3.3% during the same time, and is heading into the earnings with analyst price target of $104.2, compared to share price of $94.6.

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The author has no position in any of the stocks mentioned.