Post Holdings Inc (POST) and Hanger Inc (HGR) Plummet After Gloomy Quarterly Results

Both Post Holdings Inc (NYSE:POST) and Hanger Inc (NYSE:HGR) experienced a downward rally after their dismal quarterly results. In case of Post Holdings Inc (NYSE:POST), the company reported a loss $35.1 million primarily because of the lack of integration in the companies it acquired in 2013. Post Holdings Inc (NYSE:POST) shares lost up to 22% after opening today and its shares have dropped by an average of 9.7% throughout 2014.

Post (POST)

Post Holdings Inc (NYSE:POST) cut down its EBITDA for 2014 near to $260-270 million range, which is another reason behind the downward rally of its shares. The earlier guidance released by the company was in $300-320 million range and the company incurred losses unlike the market expectations. The company reported an adjusted per share loss of $0.3 primarily because of the losses incurred by Michael Foods and Active Nutrition. Active Nutrition posted a loss of $2.5 million whereas Michael Foods suffered a loss of $12.5 million.

Following a similar trend, Hanger Inc (NYSE:HGR) witnessed a 28% loss in its market price since morning. The company could not fulfill the market predictions for its earnings and revenue for the second quarter. Hanger Inc (NYSE:HGR) reported EPS of $0.40 against the market estimates of $0.53 and it posted revenue of $275.9 million missing the market expectations by 3%.

The primary reason behind the net sale increase of $8.1 million was an increase in sales in the patient care and Products & Services segments. The Patient Care segment witnessed an increase of $6.8 million whereas the Products & Services segment reported an increase of $1.3 million. The CEO of the company, Vinit Asar, commented on the poor quarterly performance saying, “We are clearly disappointed with our second quarter results and are revising our outlook for the year.” The company has started working on its strategy for the Dosteon and CARES business for better growth in future.

 

Click here for the latest news about SolarCity Corp (SCTY) Shares Gain Momentum after Second Quarter 2014 Results.

This article has been written by Prakash Pandey and edited by Serkan Ünal.

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