TreeHouse Foods (THS) saw its stock plummet 5.03% in pre-market trading on Tuesday, despite reporting better-than-expected first-quarter earnings. The company's shares fell sharply even as it beat analyst estimates and reiterated its full-year outlook, suggesting investors may be focusing on other concerns.

For the quarter ended March 31, TreeHouse Foods reported adjusted earnings of 3 cents per share, surpassing the mean expectation of a 19-cent loss from seven analysts. This performance also marked an improvement from the 3-cent loss reported in the same quarter last year. However, revenue fell 3.5% to $792 million, although it still marginally beat the analyst consensus of $790.42 million.

Despite the earnings beat, investors appear to be concerned about the company's overall revenue decline and potentially other factors not explicitly mentioned in the earnings report. TreeHouse Foods reiterated its 2025 outlook and provided Q2 adjusted net sales expectations of $785-$800 million, which may not have been sufficient to allay market worries. The sharp stock decline suggests that market participants may be looking beyond the headline numbers and focusing on underlying trends or future growth prospects.