Why Post Holdings (POST) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Post Holdings (POST) is well-positioned to continue its earnings-beat streak in the upcoming report, having a strong history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 22.34% [1][5]. Earnings Performance - In the last reported quarter, Post Holdings achieved earnings of $1.73 per share, surpassing the Zacks Consensus Estimate of $1.49 per share, resulting in a surprise of 16.11% [2]. - In the previous quarter, the company was expected to report earnings of $1.19 per share but delivered $1.53 per share, leading to a surprise of 28.57% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Post Holdings, with a positive Earnings ESP (Expected Surprise Prediction) of +7.20%, indicating analysts' bullish sentiment regarding the company's earnings prospects [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, as stocks with this combination have a nearly 70% success rate in exceeding consensus estimates [6][8]. Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate than earlier predictions [7]. - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss, emphasizing the importance of checking this metric before quarterly releases [8][9].