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Post Holdings sets stock target with overweight rating on earnings beat

EditorNatashya Angelica
Published 11/15/2024, 07:41 AM
POST
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On Friday, Piper Sandler maintained a positive outlook on Post Holdings (NYSE:NYSE:POST) shares, reiterating an Overweight rating with a $140.00 price target. The company's fourth fiscal quarter of 2024 results surpassed expectations, with adjusted EBITDA reaching $348.7 million. This figure notably exceeded both Piper Sandler's estimate of $320.3 million and the consensus estimate of $324.1 million.

Post Holdings' revenue for the quarter was approximately $2.01 billion, aligning with Piper Sandler's projection and coming in higher than the consensus estimate of around $1.97 billion.

The company's impressive EBITDA performance was attributed to improved margins within its Post Consumer Brands and Foodservice segments. Overall, the company achieved EBITDA margins of 17.3%, which was above the 16.0% estimated by Piper Sandler.

Management at Post Holdings has provided guidance for fiscal year 2025, projecting EBITDA to be between $1,410 million and $1,460 million. This forecast is in line with the low end of consensus estimates, which also stands at $1,410 million.

Post Holdings has not reported any significant new cases of avian flu affecting its operations. Analysts and investors are anticipating further details on this matter, as well as insights into the sustainability of the company's margin momentum during the upcoming conference call scheduled for tomorrow.

The company has a notable track record of exceeding earnings expectations, with the recent report marking its 12th consecutive quarterly beat. Piper Sandler anticipates that this trend of outperformance is likely to continue, suggesting a robust outlook for Post Holdings moving forward.

In other recent news, Post Holdings Inc. has surpassed fourth quarter earnings estimates and issued its fiscal outlook for 2025. The company's adjusted earnings per share for the quarter ending September 30 stood at $1.53, exceeding the consensus estimate of $1.21. This was accompanied by a 3.3% year-over-year rise in revenue to $2.01 billion, which also outperformed forecasts of $1.96 billion.

The increase in net sales was primarily driven by Post's Foodservice segment, which experienced volume growth and a shift towards higher value-added products. These gains offset declines in the Post Consumer Brands and Refrigerated Retail segments.

Looking ahead, Post projects an adjusted EBITDA between $1.41 billion and $1.46 billion for fiscal 2025. The company also anticipates capital expenditures ranging from $380 million to $420 million, which includes investments in network optimization and pet food capacity. These are some of the recent developments concerning Post Holdings Inc.

InvestingPro Insights

Post Holdings' recent financial performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at $6.3 billion, reflecting its significant presence in the consumer goods sector. Post's P/E ratio of 18.75 (16.49 adjusted for the last twelve months) suggests a reasonable valuation relative to its earnings, especially considering its recent earnings beat and positive outlook.

InvestingPro Tips highlight that Post Holdings has been profitable over the last twelve months, which is consistent with the strong EBITDA performance reported in the latest quarter. The company's liquid assets exceeding short-term obligations indicate a healthy financial position, supporting its ability to invest in growth and navigate market challenges.

Notably, Post Holdings has achieved a high return over the last decade, underscoring its long-term value creation for shareholders. This aligns with the company's track record of consistently beating earnings expectations, as mentioned in the article.

For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 8 more InvestingPro Tips available for Post Holdings, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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