Packaged foods company Post (NYSE: POST) will be announcing earnings results this Thursday after market close. Here’s what investors should know.
Post missed analysts’ revenue expectations last quarter, reporting revenues of $2.04 billion, up 4.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ gross margin estimates but a miss of analysts’ EBITDA estimates.
Is Post a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Post’s revenue to grow 2% year on year, in line with the 1.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Post has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Post’s peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lamb Weston delivered year-on-year revenue growth of 5.6%, beating analysts’ expectations by 4.8%, and Hershey reported revenues up 6.6%, topping estimates by 5.7%. Lamb Weston traded up 8% following the results while Hershey was down 4.8%.
Read our full analysis of Lamb Weston’s results here and Hershey’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 2.8% on average over the last month. Post is up 2.4% during the same time and is heading into earnings with an average analyst price target of $115.83 (compared to the current share price of $90.58).
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