Post Holdings Beats on Both Top and Bottom Lines

Post Holdings (NYSE: POST  ) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Post Holdings beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.

Margins contracted across the board.

Revenue details
Post Holdings reported revenue of $236.9 million. The three analysts polled by S&P Capital IQ expected a top line of $219.0 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $219.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.31. The three earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share. GAAP EPS of $0.23 for Q1 were 38% lower than the prior-year quarter's $0.37 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.6%, 10 basis points worse than the prior-year quarter. Operating margin was 12.8%, 150 basis points worse than the prior-year quarter. Net margin was 3.2%, 260 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $256.5 million. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $971.8 million. The average EPS estimate is $1.48.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 14 members out of 16 rating the stock outperform, and two members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Post Holdings a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Post Holdings is outperform, with an average price target of $39.50.

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