Post Holdings Jumps After Beating Estimates, Hiking Forecastby
Post Holdings Inc. rose as much as 10 percent after the breakfast-cereal maker topped analysts’ quarterly estimates and boosted its profit outlook for the year.
Excluding some items, earnings were 87 cents in the fiscal second quarter, the St. Louis-based company said in a statement Thursday. Analysts had estimated 41 cents a share on average, according to data compiled by Bloomberg.
Post got a boost in the quarter from the acquisitions of MOM Brands, a deal orchestrated by Chief Executive Officer Rob Vitale. He took over in late 2014 and has continued an acquisition spree that began under former CEO Bill Stiritz. The takeovers have expanded Post into eggs, potatoes, cheese, protein bars and hot cereals.
The shares climbed as high as $77.90 on Friday, the biggest intraday jump in three months. They already had been up 15 percent this year through Thursday.
Earnings before interest, taxes, depreciation and amortization will be $893 million to $913 million this year, the company said. It had previously forecast $810 million to $840 million. Second-quarter sales rose 21 percent to $1.27 billion, beating the $1.23 billion predicted by analysts.