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.
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