Zacks Equity Research reports that Post Holdings' Foodservice business could benefit from improving industry supply-demand balance and normalizing egg prices. Management estimated the segment's normalized earnings run rate at about $500 million and said the remaining gap is the mismatch between open-market and grain-based egg pricing.
Industry oversupply after avian influenza disruptions is pushing open-market egg prices below grain-based contract levels. Normalization points to softer egg prices over time, which lowers egg-related costs for buyers.
Not enough comparable past events yet for a historical read.
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