Avian Influenza Strikes Post Holdings' Two Contracted Egg Farms Housing 4.2M Hens: Details
Portfolio Pulse from Lekha Gupta
Post Holdings Inc (NYSE:POST) reported avian influenza outbreaks at two contracted egg farms in Iowa and Ohio, affecting 4.2 million hens, about 10% of its supply. Despite this, Post raised its FY24 adjusted EBITDA guidance to $1.22-$1.28 billion, factoring in 10 months of contributions from the acquisition of Perfection Pet Foods, completed on December 1, 2023. The guidance does not account for a significant expansion of avian influenza. POST shares closed up 0.73% at $88.06.
December 08, 2023 | 1:12 pm
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Post Holdings Inc faces avian influenza at two contracted egg farms, impacting 10% of its supply. Despite this, the company raised its FY24 EBITDA guidance, including contributions from Perfection Pet Foods.
The avian influenza outbreak could have been a negative factor for Post Holdings' stock, but the company's decision to raise its FY24 EBITDA guidance, reflecting the acquisition of Perfection Pet Foods, suggests management's confidence in its financial resilience and growth prospects. This positive outlook, despite the avian influenza incident, is likely to reassure investors and could lead to a short-term positive impact on the stock price.
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IMPORTANCE 75
RELEVANCE 100