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Post Holdings Has Declared Dividends

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Price movement

Post Holdings (POST) has a market cap of $5.5 billion. It rose 0.19% to close at $84.99 per share on January 20, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 1.6%, 8.6%, and 5.7%, respectively, on the same day.

POST is trading 3.7% above its 20-day moving average, 8.9% above its 50-day moving average, and 7.9% above its 200-day moving average.

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Related ETF and peers

The iShares Morningstar Mid Core ETF (JKG) invests 0.30% of its holdings in Post Holdings. The YTD price movement of JKG was 1.7% on January 20.

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

  • Kellogg (K) — $25.5 billion
  • TreeHouse Foods (THS) — $4.2 billion
  • B&G Foods (BGS) — $2.9 billion

POST declared dividends

Post Holdings declared a quarterly dividend of $0.9375 per share on its 3.75% Series B Cumulative Perpetual Convertible Preferred Stock. The company has also declared a quarterly dividend of $0.625 per share on its 2.5% Series C Cumulative Perpetual Convertible Preferred Stock.

The dividends will be paid on February 15, 2017, to preferred shareholders on February 1, 2017.

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Post Holdings’s results for fiscal 4Q16

Post Holdings reported fiscal 4Q16 net sales of $1.26 billion, a fall of 3.7% from its net sales of $1.31 billion recorded in fiscal 4Q15. The company’s gross profit margin and operating margin expanded 450 basis points and 550 basis points, respectively, between fiscal 4Q15 and fiscal 4Q16.

Its net income and EPS (earnings per share) rose to -$40.4 million and -$0.58, respectively, in fiscal 4Q16, compared with -$76.8 million and -$1.21, respectively, in fiscal 4Q15. It reported adjusted EPS of $0.61 in fiscal 4Q16, compared with $0.06 in fiscal 4Q15.

Fiscal 2016 results

In fiscal 2016, POST reported net sales of $5.0 billion, a rise of 8.1% YoY (year-over-year). The company’s gross profit margin and operating margin expanded 550 basis points and 630 basis points, respectively, between fiscal 2015 and fiscal 2016.

Its net income and EPS rose to -$28.4 million and -$0.41, respectively, in fiscal 2016, compared with -$132.3 million and -$2.33, respectively, in fiscal 2015. It reported adjusted EPS of $2.59 in fiscal 2016, compared with $0.62 in fiscal 2015.

POST’s cash and cash equivalents and inventories rose 35.9% and 8.1%, respectively, in fiscal 2016. Its current ratio and debt-to-equity ratio rose to 3.3x and 2.11x, respectively, in fiscal 2016, compared with 2.9x and 2.08x in fiscal 2015.

Projections

Post Holdings has made the following projections for fiscal 2017:

  • adjusted EBITDA of $910 million–$950 million
  • capital expenditure of $180 million–$200 million

In the next part, we’ll look at Berry Plastics Group (BERY).

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