Market Overview

A Preview Of Post Holdings's Earnings

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On Thursday, November 19, Post Holdings (NYSE: POST) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Post Holdings management projections, analysts predict EPS of $0.77 on revenue of $1.44 billion. In the same quarter last year, Post Holdings reported EPS of $1.39 on revenue of $1.44 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 44.6% decline in the company's earnings. Revenue would have fallen 0.21% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.71 0.90 1.15 1.07
EPS Actual 0.75 0.65 0.76 1.39
Revenue Estimate 1.38 B 1.42 B 1.47 B 1.42 B
Revenue Actual 1.34 B 1.49 B 1.46 B 1.44 B

Stock Performance

Shares of Post Holdings were trading at $100.73 as of November 17. Over the last 52-week period, shares are down 1.28%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Post Holdings is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: Earnings