Packaged foods company Post (NYSE:POST) will be reporting earnings tomorrow afternoon. Here’s what to expect.
Post beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $2.01 billion, up 3.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.
Is Post a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Post’s revenue to be flat year on year at $1.98 billion, slowing from the 25.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.51 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Post has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Post’s peers in the shelf-stable food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mondelez delivered year-on-year revenue growth of 3.1%, meeting analysts’ expectations, and BellRing Brands reported revenues up 23.8%, topping estimates by 1.2%. BellRing Brands traded down 4.1% following the results.
Read our full analysis of Mondelez’s results here and BellRing Brands’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the shelf-stable food stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.7% on average over the last month. Post is down 2.5% during the same time and is heading into earnings with an average analyst price target of $126.10 (compared to the current share price of $105.52).
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