Post Holdings Rises After Profit Tops Analysts’ EstimatesKevin Orland
Post Holdings Inc., the maker of Raisin Bran and Alpha Bits cereals, rose the most in more than six months after third-quarter profit topped analysts’ estimates, helped by acquisitions.
Earnings in the period were 27 cents a share, excluding some items, the St. Louis-based company said Thursday in a statement. Analysts estimated 7 cents, on average.
Post has been on an acquisition spree, snapping up Michael Foods, PowerBar and MOM Brands since mid-2014. The takeovers have expanded Post into eggs, potatoes, cheese, protein bars and hot cereals, making it a more formidable and diversified food company. Third-quarter sales rose 91 percent to $1.21 billion, driven largely by the new businesses.
Post also raised its forecast for the year, projecting adjusted earnings before interest, taxes, depreciation and amortization of as much as $650 million. That’s up from a previous forecast for as much as $610 million.
The shares rose 12 percent to $58.09 at the close in New York, the biggest one-day gain since Jan. 26. Post has gained 39 percent this year.
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