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Anticipated Financial Report of Ralcorp Holdings Approaching

Anticipation builds as Ralcorp Holdings (NYS: RAH) prepares to reveal its upcoming earnings on November 8th. Despite meeting expectations in the previous quarter, shareholders expect the company to surpass projections this time around.

Anticipated Financial Results of Ralcorp Holdings
Anticipated Financial Results of Ralcorp Holdings

Anticipated Financial Report of Ralcorp Holdings Approaching

Ralcorp Holdings (NYSE: RAH), the manufacturer, distributor, and marketer of Post-branded cereals and store-brand food products, is set to release its third-quarter earnings on Tuesday, Nov. 8.

The company's recent performance has been mixed, with some positive signs and areas of concern. In the first quarter, Ralcorp Holdings reported an operating margin of 12.5% and a net margin of 6.1%. These figures dropped to 6.5% and 2.4% in the second quarter, but rebounded slightly in the third quarter to 6.5% and 9.1%, respectively. The fourth quarter saw a dip in both operating and net margins, with operating margin standing at -11.1% and net margin at 3.7%.

The gross margins have remained relatively steady, with Q1 reporting a gross margin of 27.1%, Q2 at 29%, and Q3 at 24.7%. For the fourth quarter, the gross margin is predicted to be 25.9%.

Analysts anticipate an average revenue of $1.22 billion for this quarter, representing an 8% increase from the year-ago quarter. However, Ralcorp Holdings' income has fallen year over year by an average of 2.4% over the past five quarters.

Seven out of 11 analysts rate Ralcorp Holdings a buy, while the remaining rate it a hold. The average analyst estimate for earnings per share (EPS) is $1.40, with estimates ranging from $1.30 to $1.48. Unfortunately, there are no current EPS forecasts available from analysts for the fourth quarter of the current year.

The CAPS community at large gives Ralcorp Holdings a 92.6% outperform rating, with CAPS All-Stars giving an even higher rating of 94.3%. The company currently holds a middling CAPS rating of three out of five stars.

Despite the quiet activity on message boards, with only 63 posts in the past 30 days, investors will be closely watching Ralcorp Holdings' Q3 earnings report to gain insight into the company's future direction.

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