TreeHouse Foods (THS) Reports Q1: Everything You Need To Know Ahead Of Earnings

StockStory
05-05
TreeHouse Foods (THS) Reports Q1: Everything You Need To Know Ahead Of Earnings

Private label food company TreeHouse Foods (NYSE:THS) will be reporting results tomorrow morning. Here’s what to expect.

TreeHouse Foods met analysts’ revenue expectations last quarter, reporting revenues of $905.7 million, flat year on year. It was a slower quarter for the company, with EBITDA guidance for next quarter missing analysts’ expectations and a miss of analysts’ gross margin estimates.

Is TreeHouse Foods a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting TreeHouse Foods’s revenue to decline 3.8% year on year to $789.6 million, in line with the 3.9% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. TreeHouse Foods has missed Wall Street’s revenue estimates five times over the last two years.

Looking at TreeHouse Foods’s peers in the shelf-stable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lamb Weston delivered year-on-year revenue growth of 4.3%, beating analysts’ expectations by 2.4%, and Simply Good Foods reported revenues up 15.2%, topping estimates by 1.6%. Lamb Weston traded up 9.1% following the results while Simply Good Foods was also up 9.2%.

Read our full analysis of Lamb Weston’s results here and Simply Good Foods’s results here.

There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 3% on average over the last month. TreeHouse Foods is down 2.4% during the same time and is heading into earnings with an average analyst price target of $26.72 (compared to the current share price of $23.72).

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