Post Hldgs (NYSE:POST) Stock, Quote.Headers.trade-ideas

Post Hldgs

Post Holdings Inc is an consumer packaged goods holding company. It operates in Post Consumer Brands which Includes branded and private label ready-to-eat cereals, Weetabix it Includes the businesses of Weetabix Limited, which Post acquired in July 2017 and which produces and distributes branded and private label RTE cereal, hot cereals and other cereal-based food products, Foodservice which Includes primarily egg and potato products in the foodservice and food ingredient channels from the businesses of MFI Holding Corporation, lastly Refrigerated Retail segment Provides refrigerated retail products, inclusive of side dishes, eggs and egg products, sausage, cheese and other dairy and refrigerated products.

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Post Holdings, Inc. (NYSE: POST) is propelled by strategic initiatives amid a volatile consumer landscape marked by inflation, evolving preferences, and heightened competition in the staples sector.

Post Holdings Drives Growth With Strategic Moves and Strong Brands

Management

FRPT

VITL

Conagra Brands, Inc. (NYSE: CAG) remains focused on transforming into a branded, pure-play consumer packaged goods food organization. The company looks forward to enlarging its food businesses, buoyed by innovation and organic growth, along with expansion into adjacent categories, comprising acquisitions.

How Will the Sale of 51.8% Interest in Agro Tech Foods Aid CAG Stock?

Buybacks

Post Holdings, Inc. (NYSE: POST) has shown impressive performance lately, with shares gaining 20.9% year to date, marking a significant contrast to the industry&#39;s decline of 4.9%.

Post Holdings Rallies 21% YTD: How to Play the Stock?

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Post Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/post#NYSE">POST</a>) is propelled by strategic initiatives amid a volatile consumer landscape marked by inflation, evolving preferences, and heightened competition in the staples sector. The company&#39;s established brand presence enables it to maintain a stable market position in the sector known for steady demand, as consumer staples are essential in daily life.
A major factor behind this success was the Post Consumer Brands segment, which experienced a 15.7% year-over-year increase in net sales, largely driven by $428.9 million from acquisitions.
Over the past three months, POST&#39;s stock has gained 12%, outpacing the industry&#39;s growth of 7.3%.
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<h2>Factors Driving Post Holdings&#39; Momentum</h2>
Post Holdings has been capitalizing on strategic pricing actions to offset inflationary pressures, a trend that persisted in the third quarter of fiscal 2024. The company&#39;s top and bottom lines experienced growth, driven by higher average net selling prices, particularly in the Post Consumer Brands segment. This pricing strategy has played a critical role in bolstering the company&#39;s performance and is likely to remain a key driver of growth in the coming quarters.
Moving on to the Weetabix segment, it recorded notable growth of 1.4% in net sales, supported by the Deeside acquisition and a modest foreign currency tailwind of 80 basis points from a stronger British pound. This growth reflects the positive impact of strategic acquisitions and favorable currency movements.
Strategic acquisitions have been crucial for Post Holdings in broadening its market reach and solidifying its market position. In December 2023, Post Holdings acquired Perfection Pet, integrating it into its Post Consumer Brands segment. Additionally, on April 28, 2023, Post Holdings acquired a select pet food brand from The J.M. Smucker Co. This acquisition provides Post Holdings with a strategic entry into the burgeoning and lucrative pet food market, enhancing its presence in this growing category.
The third quarter of 2024 was marked by strong sales of branded and big cereal products, notable outperformance in the pet category against our underwriting case, and a substantial improvement in the value-added egg mix. It is envisioned that these favorable trends will continue throughout fiscal 2025.
<h2>POST Faces Some Concerns in the Near Term</h2>
Post Holdings has experienced a rise in SG&amp;A costs over recent quarters. In the third quarter of fiscal 2024, SG&amp;A expenses grew by 7.8%. This increase was due to ongoing targeted marketing investments in retail businesses. This increase was significantly influenced by the inclusion of Pet Food in the company&#39;s portfolio.
The Refrigerated Retail segment of Post Holdings reported a 7.1% decrease in net sales in the third quarter of fiscal 2024. Volumes decreased by 0.5%, and average net prices dropped due to increased trade promotions and a portfolio shift towards dinner sides. Adjusted EBITDA decreased by 37%, impacted by lower net pricing and higher selling costs.
While Post Holdings has demonstrated strong performance in certain areas, such as strategic pricing and acquisitions, challenges persist in segments like Refrigerated Retail. Maintaining positions in the stock appears prudent as it allows investors to stay engaged with the company while monitoring its ability to address current challenges and capitalize on growth opportunities.
Post Holdings currently carries a Zacks Rank #3 (Hold).
<h2>3 Staple Stocks to Consider</h2>
Here, we have highlighted three better-ranked food stocks, namely, The Chef&#39;s Warehouse (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/chef#NASDAQ">CHEF</a>), Pilgrim&#39;s Pride (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ppc#NASDAQ">PPC</a>) and Ollie&#39;s Bargain Outlet (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/olli#NASDAQ">OLLI</a>).
The Chef&#39;s Warehouse, which engages in the distribution of specialty food products, currently sports a Zacks Rank #1 (Strong Buy).
CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimated figure for The Chef&#39;s Warehouse&#39;s current fiscal year sales and earnings indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Pilgrim&#39;s Pride, which produces, processes, markets and distributes fresh, frozen and value-added chicken and pork products, currently sports a Zacks Rank #1. PPC delivered a positive earnings surprise of 27.3% in the trailing four quarters, on average.
The Zacks Consensus Estimated figure for Pilgrim&#39;s Pride&#39;s current financial-year earnings indicates growth of 183.43%, respectively, from the prior-year reported level.
Ollie&#39;s Bargain, the extreme-value retailer of brand-name merchandise, currently carries a Zacks Rank #2 (Buy). OLLI has a trailing four-quarter earnings surprise of 7.9%, on average.
The Zacks Consensus Estimated figure for Ollie&#39;s Bargain&#39;s current financial-year sales and earnings indicates a rise of around 8.7% and 12.71%, respectively, from the year-earlier levels.
<a href="https://www.zacks.com/stock/news/2333524/post-holdings-drives-growth-with-strategic-moves-and-strong-brands?cid=CS-BENZ-FT-analyst_blog|rank_focused-2333524">To read this article on Zacks.com click here.</a>

Conagra Brands, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cag#NYSE">CAG</a>) remains focused on transforming into a branded, pure-play consumer packaged goods food organization. The company looks forward to enlarging its food businesses, buoyed by innovation and organic growth, along with expansion into adjacent categories, comprising acquisitions. It has also been making divestitures to boost its overall portfolio.
In the latest development, the company revealed that it has concluded its earlier announced transaction regarding the divestiture of its 51.8% ownership stake in Agro Tech Foods Limited.
<h2>The Latest Divestiture to Boost CAG&#39;s Portfolio</h2>
Management informed that all the conditions for the sale (by one of its subsidiaries) of its 51.8% interest in Agro Tech Foods, which is an Indian-based food company, have been fulfilled. CAG intended to sell this stake in the second quarter of fiscal 2024.
The completion highlights an important strategic move to redesign Conagra&#39;s portfolio in a bid to enrich shareholders&#39; value. This is a majority-owned subsidiary consolidated within the company&#39;s International segment. Post the sale, Agro Tech Foods&#39; results will no longer be consolidated in CAG&#39;s financial statements.
<h2>Conagra&#39;s Other Strategic Moves</h2>
Prudent innovations have been helping the company to modernize its portfolio and meet consumers&#39; changing needs. It maintains its focus on investing in innovation, considering it the primary asset in its strategic approach and essential for enhancing its brands and fostering sustainable growth.
The company&#39;s actions, focused on re-engaging consumers with existing products and introducing them to new innovations, give it confidence in driving momentum through multifaceted brand-building investments. Conagra has been making advertising investments in major brands like Birds Eye and Healthy Choice, showcasing its commitment to building and promoting through innovative campaigns.
Conagra has been experiencing solid momentum in the International business. Segment net sales increased 6.4% year over year in fourth-quarter fiscal 2024, reflecting higher organic net sales and positive currency effects. Organic sales growth was driven by volumes, which rose 4.1% due to strength in Mexico and the global export business. The Mexico business has been witnessing volume growth for the past few quarters now. The continuation of these trends will continue to bolster the&nbsp; International unit.
Conagra has been seeing market share gains in the key frozen and snacks categories.&nbsp; The strength of the frozen category reflects the forte of its brands and the effective execution of the Conagra Way playbook. Conagra has made several investments in the innovation of key brands of the frozen business, which are yielding a favorable response. It has been seeing unit share gains in frozen sides, frozen single-serve meals and frozen vegetables.
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<h2>Challenges CAG is Facing Now</h2>
Despite the positives, Conagra is not immune to the operating challenges. The company has been witnessing tough industry trends, including a slowdown in consumption. During the fiscal fourth quarter, volumes dropped 1.8% year over year due to the continuation of the industry-wide slowdown in consumption and the recent changes in consumer behavior. Industry-wide macroeconomic challenges have adversely impacted consumer purchasing patterns.
The company has also been struggling with cost inflation for a while now, though the trend has been moderating of late. In the fiscal fourth quarter, the adjusted gross margin was partly hurt by the inflated cost of goods sold, soft organic sales and adverse operating leverage. The company anticipates cost of goods sold inflation to continue in the next fiscal year.
CAG&#39;s Foodservice unit has been under pressure due to sluggish consumption trends, reflecting broader industry challenges. The segment&#39;s organic sales declined 3.9% year over year in the fiscal fourth quarter. The persistence of this trend remains a concern as the segment continues to navigate a tough operating environment with ongoing pressures on consumer demand and dining-out behavior.
<h2>What&#39;s Next for CAG&#39;s Investors?</h2>
Despite the operating challenges, this Zacks Rank #4 (Sell) company&#39;s shares have been performing well on the bourses. CAG stock has gained 8.2% over the past three months compared with the industry&#39;s 3.1% growth.
The company has also been making prudent moves to tackle the operating challenges. Potential investors should weigh these hurdles carefully, as volatile consumer behavior and cost inflation cannot be ignored. However, the latest divestiture should help maintain the stock&#39;s solid performance in the near term.
<h2>Stocks to Consider</h2>
Freshpet, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/frpt#NASDAQ">FRPT</a>), a pet food company, has a trailing four-quarter average earnings surprise of 118.2%. FRPT currently sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Freshpet&#39;s current financial-year sales and earnings per share indicates growth of 24.8% and 177.1%, respectively, from the prior-year reported levels.
Vital Farms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vitl#NASDAQ">VITL</a>), which provides pasture-raised products, currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for Vital Farms&#39; current financial-year sales and EPS indicates growth of 24.9% and 66.1%, respectively, from the prior-year reported levels.
VITL has a trailing four-quarter earnings surprise of 102.1%, on average.
Post Holdings (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/post#NYSE">POST</a>), a consumer-packaged goods company, is involved in the production of refrigerated, foodservice and nutrition product categories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for POST&#39;s current financial-year sales and EPS indicates growth of 14.2% and 6.9%, respectively, from the year-ago reported figures.
<a href="https://www.zacks.com/stock/news/2329170/how-will-the-sale-of-51-8-interest-in-agro-tech-foods-aid-cag-stock?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2329170">To read this article on Zacks.com click here.</a>

Post Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>) (the "Company" or "Post") today announced the consideration payable, as set forth in the table below, for the previously announced cash tender offer (the "Tender Offer") to purchase up to $475.0 million in aggregate principal amount (subject to increase, the "Maximum Tender Amount") of its 5.625% senior notes due 2028 (the "Notes").

Offerings

Post Holdings Announces Consideration For Cash Tender Offer To Purchase Up To $475M Of Its 5.625% Senior Notes Due 2028

JP Morgan analyst Ken Goldman maintains Post Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>) with a Overweight and raises the price target from $118 to $125.

Price Target

JP Morgan Maintains Overweight on Post Hldgs, Raises Price Target to $125

Evercore ISI Group analyst David Palmer maintains Post Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>) with a Outperform and raises the price target from $122 to $123.

Evercore ISI Group Maintains Outperform on Post Hldgs, Raises Price Target to $123

Stifel analyst Matthew Smith maintains Post Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>) with a Buy and raises the price target from $120 to $130.

Stifel Maintains Buy on Post Hldgs, Raises Price Target to $130

Wells Fargo analyst Marc Torrente maintains Post Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>) with a Equal-Weight and raises the price target from $108 to $120.

Wells Fargo Maintains Equal-Weight on Post Hldgs, Raises Price Target to $120

Guidance

Post Holdings Raises FY24 Adjusted EBITDA Outlook From $1.335B-$1.375B To $1.37B-$1.39B

Post Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>) reported quarterly earnings of $1.54 per share which beat the analyst consensus estimate of $1.25 by 23.2 percent. This is a 1.32 percent increase over earnings of $1.52 per share from the same period last year. The company reported quarterly sales of $1.947 billion which missed the analyst consensus estimate of $2.020 billion by 3.59 percent. This is a 4.73 percent increase over sales of $1.859 billion the same period last year.

Earnings Beats

Earnings Misses

Post Hldgs Q3 2024 Adj. EPS $1.54 Beats $1.25 Estimate, Sales $1.947B Miss $2.020B Estimate

Post Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/post#NYSE">POST</a>) has shown impressive performance lately, with shares gaining 20.9% year to date, marking a significant contrast to the industry&#39;s decline of 4.9%. The leading consumer-packaged goods company has adeptly managed pricing strategies to mitigate the impact of inflationary pressures, particularly sugar and labor costs.
Strategic acquisitions are further expanding Post Holdings&#39; market reach and have been pivotal in enhancing the company&#39;s market position and diversifying its revenue streams. Notable acquisitions, such as Perfection Pet, have strengthened the company&#39;s portfolio and contributed to its growth trajectory.
Thanks to its robust performance across segments, this Zacks Rank #3 (Hold) company has managed to surpass both the Zacks Consumer Staples sector and the S&amp;P 500&#39;s respective gains of 2% and 17%, respectively, in the year-to-date period.
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<h3>Decoding the Stock&#39;s Rally</h3>
Post Holdings is experiencing significant momentum driven by strategic initiatives and robust performance in its Post Consumer Brands segment. During the second quarter of fiscal 2024, this segment showcased a remarkable 77.9% rise in revenues, bolstered significantly by $460.7 million in sales from acquisitions. Furthermore, the company&#39;s pet food and grocery business delivered impressive results within this segment, driven by the successful expansion of its value offerings.
Buoyed by exceptional manufacturing performance, and strategic carryover pricing, Post Holdings&#39; pet food and grocery business not only met but exceeded market demands, contributing significantly to the company&#39;s overall performance. These factors underscore the effectiveness of Post Holdings&#39; growth strategies and its ability to capitalize on market opportunities.
The acquisition of Perfection Pet in December 2023 has significantly benefited Post Holdings, expanding its customer base and strengthening its position in the market. Additionally, other notable acquisitions such as Lacka Foods Limited, PL RTE Cereal Business, Almark Foods, Conagra&#39;s Peter Pan peanut butter brand, and select pet food brands from The J.M. Smucker Co have further supported Post Holdings&#39; growth strategy.
These acquisitions have not only expanded the company&#39;s brand lineup but also diversified its product offerings, enhancing its competitive edge in the consumer-packaged goods sector.
<h3>Unlocking Shareholder Value</h3>
Post Holdings&#39; robust cash flows enable it to engage in shareholder-friendly actions. In the second quarter of fiscal 2024, it repurchased 0.1 million shares for $103.88 million. This demonstrates the company&#39;s commitment to returning value to shareholders through buybacks.
Overall, these actions underscore Post Holdings&#39; strategic capital allocation approach focusing on enhancing shareholder returns while maintaining financial flexibility for future growth initiatives.
<h3>Hiccups on the Path</h3>
Despite the positive performance indicators, Post Holdings faces challenges in a tough macroeconomic environment. Escalated SG&amp;A expenses, inflationary pressures, intense competition, declines in restaurant foot traffic, and inventory reductions remain significant concerns for the company. These factors underline the importance of prudent management and strategic decision-making to navigate challenges effectively and maintain sustainable growth amid external pressures.
Additionally, Post Holdings stock is trading at a significant premium compared to the Zacks Food - Miscellaneous industry. Its forward 12-month P/E of 17.48X is higher than the industry&#39;s 15.42X.
While Post Holding&#39;s strategic initiatives keep it well positioned for further growth, investors might want to wait for a better entry point, given the near-term hurdles and stretched valuation. Post Holdings currently carries a Zacks Rank #3 (Hold).
<h3>3 Picks You Can&#39;t Miss</h3>
Here, we have highlighted three better-ranked stocks, namely, Colgate-Palmolive (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cl#NYSE">CL</a>), Church &amp; Dwight Co., Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chd#NYSE">CHD</a>) and Ollie&#39;s Bargain Outlet (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/olli#NASDAQ">OLLI</a>).
Colgate-Palmolive, which manufactures and sells consumer products, currently carries a Zacks Rank #2 (Buy). CL delivered an earnings surprise of 4.4% in the trailing four quarters, on average.
The Zacks Consensus Estimate for Colgate-Palmolive&#39;s current fiscal-year sales and earnings suggests growth of 3.8% and nearly 9.3%, respectively, from the year-ago reported numbers.
Church &amp; Dwight Co. develops, manufactures and markets a broad range of household, personal care and specialty products. The company currently carries a Zacks Rank #2. CHD has a trailing four-quarter earnings surprise of 9.6%, on average.
The Zacks Consensus Estimate for Church &amp; Dwight&#39;s current fiscal-year sales and earnings suggests growth of 4.6% and 9.1%, respectively, from the year-ago reported numbers.
Ollie&#39;s Bargain, the extreme-value retailer of brand-name merchandise, currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
The Zacks Consensus Estimate for Ollie&#39;s Bargain&#39;s current financial-year sales and earnings indicates a rise of around 7.9% and 12.0%, respectively, from the year-earlier levels.
<a href="https://www.zacks.com/stock/news/2302640/post-holdings-post-rallies-21-ytd-how-to-play-the-stock?cid=CS-BENZ-FT-analyst_blog|rank_focused-2302640">To read this article on Zacks.com click here.</a>

Post Affirms FY24 Adj. EBITDA $1.335B-$1.375B

Post Holdings Reports Avian Influenza At Michael Foods' Third-Party Contracted Facilities

Barclays analyst Andrew Lazar maintains Post Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>) with a Overweight and raises the price target from $115 to $120.

Barclays Maintains Overweight on Post Hldgs, Raises Price Target to $120

Stifel analyst Matthew Smith maintains Post Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>) with a Buy and raises the price target from $115 to $120.

Stifel Maintains Buy on Post Hldgs, Raises Price Target to $120

Evercore ISI Group analyst David Palmer maintains Post Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>) with a Outperform and raises the price target from $118 to $122.

Evercore ISI Group Maintains Outperform on Post Hldgs, Raises Price Target to $122

Outlook
For fiscal year 2024, Post management has raised its guidance range for Adjusted EBITDA to $1,335-$1,375 million from $1,290-$1,340 million. Post management expects fiscal year 2024 capital expenditures to range between $420-$445 million, which includes Foodservice investment in the expansion of the Norwalk, Iowa precooked egg facility and the start of Phase II expansion of the Bloomfield, Nebraska cage-free egg facility, for aggregate expenditures of $100-$110 million. This also includes $90-$100 million for Pet Food quality, safety, capacity, pilot plant and distribution network investments and approximately $20 million related to the scheduled closing of the Lancaster, Ohio cereal manufacturing facility.
Post provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for income/expense on swaps, net, gain/loss on extinguishment of debt, net, integration and transaction costs, mark-to-market adjustments on commodity and foreign exchange hedges and equity securities, equity method investment adjustment and other charges reflected in Post's reconciliations of historical numbers, the amounts of which, based on historical experience, could be significant. For additional information regarding Post's non-GAAP measures, see the related explanations presented under "Use of Non-GAAP Measures."

Post Holdings Raises FY24 Guidance Range For Adjusted EBITDA From $1.290B-$1.340B To $1.335B-$1.375B

Post Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>) reported quarterly earnings of $1.51 per share which beat the analyst consensus estimate of $1.28 by 17.97 percent. This is a 37.27 percent increase over earnings of $1.10 per share from the same period last year. The company reported quarterly sales of $2.00 billion which missed the analyst consensus estimate of $2.03 billion by 1.53 percent. This is a 23.40 percent increase over sales of $1.62 billion the same period last year.

Post Hldgs Q2 Adj $1.51 Beats $1.28 Estimate, Sales $2.00B Miss $2.03B Estimate

Cal-Maine Foods Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/calm#NASDAQ">CALM</a>) is the largest and leading producer and distributor of fresh shell eggs in the United States, with a 19% market share. Shareholders are rejoicing over its strong fiscal Q3 2024 earnings report and special $1.00 dividend. The company has staged a solid turnaround despite egg prices falling and the growing concerns over highly pathogenic avian influenza (HPAI).
Demand has remained stronger than ever, as reflected by its blockbuster earnings figures. Despite record volumes, the basic materials sector stock is still in value investing territory, with shares trading at just 11.15X earnings and 13.59X forward earnings. It competes with Post Holdings Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/post#NYSE">POST</a>) as one of the largest food service suppliers of egg products.
<h2>Avian Flu Impacts </h2>
Concerns over avian flu (h5n1) have been making headlines, with farm livestock and cattle getting infected and even human infections becoming a reality. The USDA reported nearly 15.7 million commercial layer hens and pullets were depopulated (terminated) between November 2023 and January 2024. Cal-Maine experienced an outbreak in its Kansas facility, resulting in 1.5 million laying hens and 240,000 pullets being depopulated.
On April 2, 2024, the company reported positive test results for avian flu at its Parmer County, Texas facility, resulting in depopulating 1.6 million egg-laying hens (adult female chickens) and 337,000 pullets (less than 1 year-old female chickens) or 3.6% of its total flock. Production at the facility has been temporarily halted.&nbsp;
Cal-Maine was impacted by the significant egg supply reduction. With recent outbreaks causing market prices to spike, the overall impact is still considered to not be severe according to the company.
<h2>Growing Portfolio of Brands</h2>
The company has continued to acquire farms like Fassio Egg Farms and a closed broiler processing plant, hatchery and feed mill from Tyson Foods Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsn#NYSE">TSN</a>) to help meet the strong demand. While you may not have seen Cal-Maine namesake brand eggs at your local grocer, you&#39;ve more than likely purchased eggs under their portfolio of brands. They include Farmhouse, 4-Grain, Egg-Land&#39;s Best, Sunny Meadows and Land O&#39;Lakes.
<img alt="calm stock daily cup and handle breakout" src="https://www.marketbeat.com/logos/articles/med_20240407134930_chartz-calm.jpg" style="height:800px; width:915px" />
<h2>Daily Cup and Handle Breakout </h2>
The daily candlestick chart on CALM illustrates a cup and handle breakout pattern. The cup lip line formed on the double top at $58.31 on April 4, 2023. Shares sold off to a swing low of $42.16 on October 4, 2023, before staging a rally back towards the cup lip line, peaking at $57.83. CALM pulled back down to $52.91 on January 4, 2024, to set the stage for the handle formation as shares attempted twice to break the cup lip line, eventually reaching a new high peak at $64.76. The daily relative strength index (RSI) is testing the 70-band on its recent bounce. Pullback support levels are at $58.31, $55.11, $50.23 and $48.06.
<h2>Eggs-Citing EPS Beat and Special Dividend &nbsp;</h2>
On April 2, 2024, Cal-Maine reported an EPS of $3.00, beating consensus estimates for $2.45 by 55 cents. Revenues fell 29.5% YoY to $703.08 million, beating $692.35 million consensus estimates. The company will pay out a special $1.00 dividend to hold its Class A common stock, payable May 16, 2024, to holders of record as of May 1, 2024.
<h2>CEO Insights </h2>
Cal-Maine CEO Max Bowman noted that its fiscal Q3 2024 sales of $703.1 million were up against tough comps of $997.5 million in the year-ago period, which was the company&#39;s highest quarterly sales period with record high average selling prices for specialty and conventional eggs. The sales decline was a result of a significant drop in supplies due to the avian flu. Market prices have spiked as a result. Overall volume rose 3.2% to 300.9 million dozen.
Conventional eggs sold grew 2.6% to 192.2 million dozen, while specialty eggs rose 4.4% YoY to 108.6 million dozen sold. The net average selling price per dozen conventional eggs dropped 40% to $2.152 compared to $3.678 in the year-ago period. Specialty egg prices fell from $2.616 per dozen, down 36.1%, to $2.415 per dozen.
Bowman commented, &quot;Demand for shell eggs has remained strong as consumers look for an affordable and nutritious protein option. Across our operations, we are focused on meeting this demand as we continue to identify opportunities to extend our market reach.&quot;
Bowman concluded, &quot;We have a strong balance sheet that provides us with the flexibility to fund our growth initiatives, including potential acquisitions. We believe fiscal 2024 will be another successful year for the Company, and we look forward to the opportunities ahead for Cal-Maine Foods.&quot;
<a href="https://www.marketbeat.com/stocks/NASDAQ/CALM/price-target/">Cal-Maine analyst ratings and price targets</a> are at MarketBeat. Cal-Maine&#39;s peers and competitor stocks can be found with the <a href="https://marketbeat.com/stock-screener/">MarketBeat stock screener.</a>
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/cal-maine-foods-delivers-an-eggs-citing-eps-beat/">Cal-Maine Foods Delivers an Eggs-Citing EPS Beat</a>&quot; first appeared on MarketBeat.

CALM

Cal-Maine Foods Delivers an Eggs-Citing EPS Beat

Although U.S. stocks closed higher on Thursday, there were a few notable insider trades.
When insiders purchase shares, it indicates their confidence in the company&#39;s prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
Below is a look at a few recent notable insider purchases. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/"> Benzinga&#39;s insider transactions </a> platform.
<h3>KalVista Pharmaceuticals </h3>
<ul>
<li>The Trade: KalVista Pharmaceuticals, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kalv#NASDAQ">KALV</a>) 10% owner Nimish P Shah <a href="https://www.benzinga.com/quote/KALV/analyst-ratings"> acquired a total of 86,048 shares </a> an average price of $14.62. To acquire these shares, it cost around $1,257,829.</li>
<li>What&rsquo;s Happening: KalVista Pharma, during December, announced publication of first oral factor XIIa data in Frontiers in Pharmacology.</li>
<li>What KalVista Pharmaceuticals Does: KalVista Pharmaceuticals Inc is a pharmaceutical company, which focuses on the discovery, development, and commercialization of small molecule protease inhibitors for a range of diseases.</li>
</ul>
<h3>Post Holdings </h3>
<ul>
<li>The Trade: Post Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/post#NYSE">POST</a>) Director Thomas C ERB acquired a total of 1,000 shares at an average price of $104.24. To acquire these shares, it cost around $104,240.</li>
<li>What&rsquo;s Happening: Post Holdings reported better-than-expected first-quarter results.</li>
<li>What Post Holdings Does: Post Holdings Inc is an consumer packaged goods holding company.</li>
</ul>
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
<h3>Lee Enterprises </h3>
<ul>
<li>The Trade: Lee Enterprises, Incorporated (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lee#NASDAQ">LEE</a>) Director Steven C. Fletcher <a href="https://www.benzinga.com/sec/insider-trades/"> bought a total of 2,000 shares </a> at an average price of $9.99. To acquire these shares, it cost around $19,976.</li>
<li>What&rsquo;s Happening: Lee Enterprises posted a profit for the first quarter.</li>
<li>What Lee Enterprises Does: Lee Enterprises Inc is a local news publication company in the United States.</li>
</ul>
<h3>Monro </h3>
<ul>
<li>The Trade: Monro, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mnro#NASDAQ">MNRO</a>) CEO and President Michael T Broderick <a href="https://www.benzinga.com/sec/insider-trades/"> bought a total of 5,000 shares </a> at an average price of $32.30. The insider spent around $161,490 to buy those shares.</li>
<li>What&rsquo;s Happening: Monro posted in-line earnings for its third quarter.</li>
<li>What Monro Does: Monro Inc is a provider automobile service stations in the United States.</li>
</ul>
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Press Releases

Post Holdings Reports Results for the Second Quarter of Fiscal Year 2024; Raises Fiscal Year 2024 Outlook

Post Holdings Reports Avian Influenza at Third-Party Contracted Facilities and Affirms Fiscal Year 2024 Adjusted EBITDA Outlook

Post Holdings Announces Upcoming Executive Leadership Changes at Weetabix and Refrigerated Retail Businesses

Post Holdings Schedules Third Quarter Fiscal Year 2024 Conference Call

Post Holdings Reports Results for the Third Quarter of Fiscal Year 2024; Raises Fiscal Year 2024 Outlook

Post Holdings Announces Cash Tender Offer for 5.625% Senior Notes Due 2028

Post Holdings Announces Commencement of Senior Notes Offering

Post Holdings Announces Pricing of Senior Notes Offering

Post Holdings Announces Early Tender Results of Cash Tender Offer for 5.625% Senior Notes Due 2028

Post Holdings Announces Consideration for Cash Tender Offer for 5.625% Senior Notes Due 2028

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