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Post Holdings Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 2:34PM

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Just the facts, Fool.

Post Holdings (NYSE: POST) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Post Holdings beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.

Margins contracted across the board.

Revenue details
Post Holdings reported revenue of $236.9 million. The three analysts polled by S&P Capital IQ expected a top line of $219.0 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $219.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.31. The three earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share. GAAP EPS of $0.23 for Q1 were 38% lower than the prior-year quarter's $0.37 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.6%, 10 basis points worse than the prior-year quarter. Operating margin was 12.8%, 150 basis points worse than the prior-year quarter. Net margin was 3.2%, 260 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $256.5 million. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $971.8 million. The average EPS estimate is $1.48.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 14 members out of 16 rating the stock outperform, and two members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Post Holdings a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Post Holdings is outperform, with an average price target of $39.50.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Post Holdings, Inc. Stock Quote
Post Holdings, Inc.
POST
$88.90 (3.40%) $2.92

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