The 10-second takeaway
For the quarter ended March 31 (Q2), Post Holdings missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins shrank across the board.
Post Holdings chalked up revenue of $248.2 million. The three analysts polled by S&P Capital IQ anticipated revenue of $255.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.19. The four earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. Non-GAAP EPS of $0.19 for Q2 were 51% lower than the prior-year quarter's $0.39 per share. GAAP EPS of $0.13 for Q2 were 57% lower than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.3%, 300 basis points worse than the prior-year quarter. Operating margin was 11.6%, 170 basis points worse than the prior-year quarter. Net margin was 2.1%, 210 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $249.2 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $995.9 million. The average EPS estimate is $1.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 15 members out of 16 rating the stock outperform, and one members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Post Holdings a green thumbs-up, and 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 $41.33.
The rich are different than you and me: They might not notice the moneymaking stories right under our noses. In our new report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice," we give you three Peter Lynch-inspired buy-what-you-know stocks for the 99%. Click here for instant access to this free report.
- Add Post Holdings to My Watchlist.
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.