Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Post (NYSE:POST) and its peers.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 21 shelf-stable food stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 0.7% below.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. Thankfully, shelf-stable food stocks have been resilient with share prices up 6.3% on average since the latest earnings results.
Post (NYSE:POST) Founded in 1895, Post (NYSE:POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.
Post reported revenues of $1.95 billion, up 4.7% year on year. This print fell short of analysts’ expectations by 3.4%, but it was still a strong quarter for the company with a solid beat of analysts’ gross margin and earnings estimates.
Interestingly, the stock is up 4.2% since reporting and currently trades at $115.08.
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Best Q2: BellRing Brands (NYSE:BRBR) Spun out of Post Holdings in 2019, Bellring Brands (NYSE:NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
BellRing Brands reported revenues of $515.4 million, up 15.6% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with an impressive beat of analysts’ gross margin and organic revenue growth estimates.
The market seems happy with the results as the stock is up 15.9% since reporting. It currently trades at $57.24.
Weakest Q2: Lamb Weston (NYSE:LW) Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.61 billion, down 4.9% year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted underwhelming earnings guidance for the full year and a miss of analysts’ organic revenue growth estimates.
Lamb Weston delivered the weakest full-year guidance update in the group. As expected, the stock is down 20.3% since the results and currently trades at $62.67.
Hain Celestial (NASDAQ:HAIN) Sold in over 75 countries around the world, Hain Celestial (NASDAQ:HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.
Hain Celestial reported revenues of $418.8 million, down 6.5% year on year. This number met analysts’ expectations. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ earnings and organic revenue growth estimates.
The stock is up 10.7% since reporting and currently trades at $7.57.
McCormick (NYSE:NYSE:MKC) The classic red Heinz ketchup bottle’s competitor, McCormick (NYSE:MKC) sells food-flavoring products like condiments, spices, and seasoning mixes.
McCormick reported revenues of $1.64 billion, flat year on year. This print met analysts’ expectations. It was a strong quarter as it also put up a decent beat of analysts’ organic revenue growth and earnings estimates.
The stock is up 23.8% since reporting and currently trades at $83.79.
This content was originally published on Stock Story
