TreeHouse Foods (NYSE: THS) saw its stock plummet 5.35% in pre-market trading on Thursday, following the release of its second-quarter 2025 earnings report. Despite beating analyst expectations on both earnings per share and revenue, investors appeared concerned about the company's profitability and future outlook.

The private label food manufacturer reported adjusted earnings of $0.17 per share, surpassing the analyst consensus estimate of $0.10. However, this represents a 41.38% decrease from the $0.29 per share reported in the same period last year. TreeHouse's quarterly sales came in at $801.4 million, beating the estimated $787.018 million and showing a modest 1.64% increase year-over-year. Despite these positive results, the company posted a net loss from continuing operations of $2.9 million, raising concerns about its overall profitability.

TreeHouse Foods updated its full-year 2025 guidance, projecting adjusted net sales between $3.360 billion and $3.415 billion. The company also maintained its adjusted EBITDA guidance, which stood at $73.3 million for the second quarter. While these figures suggest steady performance, investors may be wary of the company's ability to improve its bottom line in the face of ongoing economic challenges and competitive pressures in the private label food sector. The significant stock drop indicates that market participants are looking for more convincing signs of profitability and growth from TreeHouse Foods in the coming quarters.