Post Holdings (POST) to Report Q3 Earnings: What to Expect?

Core Insights - The Zacks Consensus Estimate for Post Holdings' earnings has decreased to $1.21 per share, indicating a year-over-year decline of 20.4, despite a strong record of exceeding earnings expectations in the past four quarters with an average surprise of 41% [1] Group 1: Financial Performance - The Consumer Brand segment, which includes grocery and pet food, is performing well, with the grocery segment benefiting from stable market share and improving margins, while the pet food segment is seeing increased market share and sales volume due to targeted investments [2] - The Zacks Consensus Estimate for third-quarter revenues stands at $2,012 million, reflecting an increase of 8.2% from the previous year [8] - The Zacks Consensus Estimate for net sales from the Consumer Brand segment suggests a year-over-year increase of 20.7% for the fiscal third quarter [18] Group 2: Challenges and Risks - Post Holdings is facing declining volumes, particularly in non-retail cereal and peanut butter, with overall grocery volumes impacted by reduced SNAP benefits [3] - The Foodservice segment has experienced a decline in net sales and volumes, primarily due to lower egg volumes from reduced restaurant foot traffic, with a Zacks Consensus Estimate suggesting a year-over-year decline of 5.3% for this segment [19] - The company is grappling with inflationary pressures, especially in sugar and labor costs, which could erode profit margins despite some offsets from better freight and grain costs [11] Group 3: Strategic Initiatives - Post Holdings has implemented effective pricing strategies and expanded its product offerings, positioning the company for potential revenue growth by capturing increased market share [9] - The integration of recent acquisitions, such as Perfection Pet, has strengthened the company's market presence and operational capabilities, enhancing production and distribution efficiency [10]