Post Holdings, Inc. POST is increasing its business by strategic acquisitions. One such acquisition was the acquisition of choose pet meals manufacturers from The J.M. Smucker Co. This acquisition will present Post Holdings with a compelling entry level into the engaging and rising pet meals class. This transfer is predicted to diversify the corporate’s product portfolio and create alternatives for progress within the pet meals business, which is understood for its dynamism and progress potential.
Additionally, the corporate has undertaken varied acquisitions over time which have strengthened its product base and have been accretive to its efficiency. Some of the notable acquisitions previously few years are Lacka Foods Limited, Almark, Conagra’s Peter Pan peanut butter model, Hungry Planet, Henningsen Foods Inc. and Bob Evans.
Image Source: Zacks Investment Research
What Else Should You Know?
Post Holdings has been utilizing pricing actions successfully to fight rising enter and freight prices. This pricing technique has contributed to the corporate’s constructive third-quarter fiscal 2023 outcomes. Adjusted earnings from persevering with operations per share considerably elevated 12 months over 12 months, from 69 cents to $1.52 per share. Total gross sales reached $1,859.4 million, reflecting a considerable 21.9% year-over-year rise.
Post Holdings has skilled gross sales progress throughout varied segments, together with Post Consumer Brands, Weetabix, and Foodservice, within the fiscal third quarter. Notably, the Post Consumer Brands section demonstrated substantial gross sales progress, pushed partially by its Pet Food division.
The Post Consumer Brands section achieved exceptional gross sales progress of 51.6% year-over-year within the fiscal third quarter, reaching $871.3 million, together with contributions from its Pet Food division. The Foodservice section witnessed 7.5% year-over-year gross sales progress, pushed by greater demand for away-from-home egg and potato merchandise. The Weetabix section’s gross sales rose 7.4% 12 months over 12 months.
High SG&A Cost Hurdles
While the corporate is experiencing progress in varied points of its business, it’s going through challenges associated to rising promoting, normal, and administrative (SG&A) bills. SG&A prices elevated 33.7% 12 months over 12 months within the third quarter of fiscal 2023. As a proportion of gross sales, SG&A prices elevated 140 bps to 16.2%. The greater SG&A expense pattern is a possible concern as it could affect the corporate’s profitability and general monetary efficiency if not managed successfully.
Share Price Movement & Estimates
Shares of this Zacks Rank #3 (Hold) firm have gained 4.3% previously 12 months towards the business’s decline of 0.3%.
The Zacks Consensus Estimate for the present and subsequent fiscal years’s earnings has been unchanged at $4.86 and $5.05, respectively, over the previous 30 days, indicating respective year-over-year will increase of 189.3% and three.8%.
Stocks to Consider
We have highlighted three better-ranked shares, particularly MGP Ingredients, Inc. MGPI, Celsius Holdings CELH and Flowers Foods FLO.
MGP Ingredients produces and markets substances and distillery merchandise to the packaged items business. The firm at present sports activities a Zacks Rank #1 (Strong Buy). You can see the entire listing of immediately’s Zacks #1 Rank shares right here.
The Zacks Consensus Estimate for MGP Ingredients’ present financial-year gross sales and EPS suggests progress of 5.8% and 10.4%, respectively, from the year-ago reported figures. MGPI has a trailing four-quarter earnings shock of round 18%, on common.
Celsius Holdings, which presents useful drinks and liquid dietary supplements, at present flaunts a Zacks Rank #1. CELH delivered an earnings shock of 100% within the second quarter of 2023.
The Zacks Consensus Estimate for Celsius Holdings’ present financial-year gross sales and earnings suggests progress of 88.9% and 170.7%, respectively, from the year-ago reported numbers.
Flowers Foods emphasizes offering high-quality baked objects. The firm at present carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Flowers Foods’s present financial-year gross sales suggests progress of 6.7% from the year-ago reported determine. FLO has a trailing four-quarter earnings shock of seven.6%, on common.
Want the latest suggestions from Zacks Investment Research? Today, you may obtain 7 Best Stocks for the Next 30 Days. Click to get this free report
Flowers Foods, Inc. (FLO) : Free Stock Analysis Report
Post Holdings, Inc. (POST) : Free Stock Analysis Report
MGP Ingredients, Inc. (MGPI) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
