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Post Holdings Declared Quarterly Dividends

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Price movement

Post Holdings (POST) has a market cap of $5.6 billion. It rose by 0.48% to close at $87.85 per share on July 18, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.87%, 18.2%, and 42.4%, respectively, on the same day. POST is trading 7.1% above its 20-day moving average, 12.8% above its 50-day moving average, and 29.0% above its 200-day moving average.

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Related ETF and peers

The iShares Morningstar Small Core ETF (JKJ) invests 0.89% of its holdings in Post Holdings. The ETF tracks a market-cap-weighted index of US small-cap core stocks. The index selects stocks from 90%-97% of the market cap that falls into Morningstar’s core style categorization. The YTD price movement of JKJ was 10.8% on July 18.

The market caps of Post Holdings’ competitors are as follows:

  • Kellogg Company (K): $30.1 billion
  • TreeHouse Foods (THS): $5.8 billion
  • B&G Foods (BGS): $3.0 billion

Post Holdings declared dividends

Post Holdings has declared a quarterly dividend of $0.94 per share on its 3.8% Series B Cumulative Perpetual Convertible Preferred Stock.

It also declared a quarterly dividend of $0.63 per share on its 2.5% Series C Cumulative Perpetual Convertible Preferred Stock.

The dividends will be paid on August 15, 2016, to preferred shareholders as of August 1, 2016.

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Performance in fiscal 2Q16

Post Holdings reported fiscal 2Q16 net sales of $1.3 billion, an increase of 20.7% compared to net sales of $1.1 billion in fiscal 2Q15. The company’s cost of goods sold as a percentage of net sales fell by 8.1% in fiscal 2Q16 compared to the same period last year. In fiscal 2Q16, it reported an operating profit of $1.6 billion compared to $49.7 million in fiscal 2Q15.

In fiscal 2Q16, the company’s net income and EPS (earnings per share) fell to $1.5 million and $0.02, respectively, from $26.3 million and $0.45, respectively, in fiscal 2Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $247.8 million, an increase of 66.1% compared to fiscal 2Q15.

Post Holdings’ cash and cash equivalents and inventories rose by 3.2% and 5.6%, respectively, in fiscal 2Q16 compared to fiscal 4Q15. Its current ratio rose to 3.3x, and its DE (debt-to-equity) ratio fell to 2.06x compared to current and DE ratios of 2.9x and 2.1x, respectively, in fiscal 4Q15.

Projections

Post Holdings has made the following projections:

  • adjusted EBITDA of $8.9 billion–$9.1 billion for fiscal 2016
  • adjusted EBITDA of $410 million–$430 million for 2H16
  • capital expenditures of $145 million–$155 million for fiscal 2016, including ~$20 million related to growth activities and ~$20 million related to integration activities
  • maintenance capital expenditures of $105 million—$115 million for fiscal 2016

In the next part of this series, we’ll take a look at Coach.

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