Post Holdings Q2 Earnings Beat Estimates, FY25 Outlook Raised

Post Holdings, Inc. POST reported second-quarter fiscal 2025 results, with the top line missing the Zacks Consensus Estimate but the bottom line exceeding the same. However, both metrics declined year over year.Post Holdings’ Q2 Metrics in DetailThe company posted adjusted earnings of $1.41 per share, surpassing the Zacks Consensus Estimate of $1.18. However, the bottom line decreased from the adjusted earnings of $1.51 recorded in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Post Holdings, Inc. Price, Consensus and EPS Surprise Post Holdings, Inc. price-consensus-eps-surprise-chart | Post Holdings, Inc. QuoteNet sales reached $1,952.1 million, marking a 2.3% decrease year over year, which includes $2.3 million from acquisitions. When excluding the acquisition impact, net sales growth in Foodservice was counterbalanced by declines in Post Consumer Brands, Refrigerated Retail and Weetabix. The top line missed the Zacks Consensus Estimate of $1,977 million.The gross profit of $545.8 million decreased 5.8% year over year, while the gross margin contracted to 28% from 29%.Selling, general and administrative expenses decreased 7.8% to $314.8 million. As a percentage of net sales, the metric was 16.1% compared with 17.1% reported in the year-ago period.The operating profit registered a decrease of 4.2% to $182.2 million. The adjusted EBITDA was $346.5 million, an increase of 0.4% from $345.2 million in the year-ago quarter.Decoding Post Holdings’ Segmental PerformancePost Consumer Brands: The segment reported net sales of $987.9 million, down 7.3% year over year. The figure also missed our estimate of $1,019 million. This decline was due to a 5.8% drop in volumes. Cereal volumes fell 6.3%, reflecting overall category softness. Pet food volumes declined 5.4%, caused by reduced private label and co-manufactured products, as well as distribution losses, partially offset by changes in customer inventory levels. The segment’s profit dropped 0.1% to $139.6 million, with adjusted EBITDA rising 2.4% to $203.8 million.Weetabix: The segment registered a 4.6% decline in net sales to $131.7 million and missed our estimate of $133 million. This included a foreign currency headwind of approximately 70 basis points. Volumes declined 7.1%, primarily due to the strategic exit of low-performing products, reduced promotional activity and cereal category declines. The segment's profit increased 0.6% to $18.2 million, with adjusted EBITDA rising 9% to $30.3 million.Foodservice: The segment recorded 9.6% growth in net sales to $607.9 million, which also surpassed our estimate of $585 million. Volumes grew 2.8%, driven by the addition of ready-to-drink shakes, partially offset by declines in egg and potato products. The segment’s profit decreased 4.7% to $61.5 million, with adjusted EBITDA down 5.6% to $96 million.Refrigerated Retail: The segment sales dipped 6.6% year over year, amounting to $224.6 million and missed our estimate of $238 million. Volumes dropped 4.9%, primarily due to the shifting of holiday timing in the current and prior-year periods. The segmental profit fell 27.7% to $16.2 million, while adjusted EBITDA dropped 14.3% to $34.7 million.Other Financial Aspects of POSTPost Holdings ended the quarter with cash and cash equivalents of $617.6 million, long-term debt of $6,944.6 million and total shareholders’ equity of $3,841.4 million.In the second quarter of fiscal 2025, Post Holdings repurchased 1.7 million shares of its common stock for $191.6 million. For the six months ended March 31, 2025, it repurchased a total of 3.3 million shares for $372.7 million. From the end of the second quarter through May 7, 2025, the company repurchased an additional 0.2 million shares for $17.4 million. As of May 7, $397.9 million remained available under the existing share repurchase authorization.What to Expect From POST in FY25?Post Holdings has updated its guidance for fiscal 2025 adjusted EBITDA, now expecting a range of $1,430-$1,470 million, up from the previous band of $1,420-$1,460 million.In addition, the company expects fiscal 2025 capital expenditures to be between $390 million and $430 million. This includes investments of $100-$110 million by Post Consumer Brands for network optimization, announced plant closures, and pet food safety and capacity enhancements. It also includes $80-$90 million in Foodservice investments, primarily for completing the Norwalk, Iowa precooked egg facility expansion and continuing the expansion of cage-free egg facilities.This Zacks Rank #3 (Hold) company’s shares have increased 0.9% compared with the industry’s growth of 0.5% in the past three months.Image Source: Zacks Investment ResearchTop-Ranked StocksUnited Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1.9% and 485.7%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 408.7%, on average.Mondelez International, Inc. MDLZ manufactures, markets and sells snack food and beverage products in Latin America, North America, Asia, the Middle East, Africa, and Europe. It presently carries a Zacks Rank of 2. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average.The Zacks Consensus Estimate for Mondelez International’s current financial-year sales indicates growth of 4.9% from the year-ago numbers.BRF S.A. BRFS raises, produces and slaughters poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank of 2. BRFS delivered a trailing four-quarter earnings surprise of 9.6%, on average.The Zacks Consensus Estimate for BRF S.A.'s current fiscal-year sales indicates growth of 0.3% from the prior-year levels.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BRF S.A. (BRFS): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks