Treehouse Foods Up 4.73% To $44.73 After Earnings Beat

TreeHouse Foods Inc. (THS) surpassed earnings projections on 8/8/2022 for Q2 2022.

Treehouse Foods's earnings came in at an EPS loss of $0.04 per share, 69.00% higher than estimates for an EPS loss of $0.13 per share. The firm's earnings are down 115% since reporting $0.26 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $1.1 billion. The Consumer Defensive company managed to surpass those expectations for its second quarter with revenue of $1.2 billion, a positive revenue surprise of $98 million (9%). The firm managed 19% growth year-over-year due to Treehouse Foods reporting quarterly revenue of $1 billion in its year-ago quarter. Treehouse Foods achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is up 4.73% to $44.73 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Treehouse Foods has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 94, putting Treehouse Foods in the top 25% of stocks. The firm was recently trading at a 52-week high of $45.38 on August 2, 2022 and set a 52-week low on March 14, 2022 at $29.47.

TreeHouse Foods, the largest private label manufacturer in the U.S., is the product of a slew of acquisitions, the most significant being the 2016 acquisition of Ralcorp, Conagra's former private brands business. The firm plays in over 25 categories, including snacks like pretzels and cookies, meals like pasta and dry dinners, and single-serve beverages like pods and ready-to-drink coffee. Retailers represent its most significant end-market, where it sells products for resale under retailer brands, but it also serves foodservice customers (providing a similar service as its retail business), industrial (selling bulk food for repackaging and repurposing), and branded consumer goods firms (under co-packing arrangements).