TreeHouse Foods (THS) to Report Earnings Tomorrow: What to Expect

Private label food company TreeHouse Foods (NYSE:THS) is set to report earnings tomorrow morning. Here’s what to watch.

TreeHouse Foods beat analyst revenue expectations by 2.8% in the latest quarter, reporting revenue of $820.7 million, down 3.9% year over year. It was a mixed quarter for the company, with an impressive beat on analyst estimates for organic revenue growth but a miss on analyst estimates for gross margin.

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

Analysts are expecting TreeHouse Foods revenue to decline 2.3% year over year to $785.4 million for the quarter, reversing the 5% increase seen in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

Most analysts covering the company have reaffirmed their estimates over the past 30 days, suggesting they expect the company to maintain its course toward earnings. TreeHouse Foods has missed Wall Street revenue estimates six times over the past two years.

Looking at TreeHouse Foods’ competitors in the shelf-stable food segment, some have already reported second-quarter results, giving us a hint of what to expect. Kellanova’s revenue fell 4.7% year over year, beating analysts’ expectations by 1.5%, while Post reported revenue growth of 4.7%, missing estimates by 3.4%. Kellanova saw growth of 8.3% after the results, while Post also grew by 3.1%.

Read our full analysis of Kellanova’s results here and Post’s results here.

Investors in the shelf-stable foods space are in positive spirits, with shares up an average of 4% over the past month. TreeHouse Foods is up 4.9% in the same time frame and is on track for profit with an average analyst price target of $37.30 (compared to the current share price of $39.31).

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