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TreeHouse Foods (THS) to Post Q2 Earnings: What's in Store?

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TreeHouse Foods, Inc. (THS - Free Report) is likely to register marginal increase in the top line, when it reports second-quarter 2021 numbers on Aug 5, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $1,043 million, which indicates a slight improvement of 0.1% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for second-quarter earnings is unchanged in the past 30 days at 26 cents per share, projecting a decline of 55.2%. TreeHouse Foods has a trailing four-quarter earnings surprise of 14.2%, on average. Further, it outperformed the Zacks Consensus Estimate by 16.1% in the last reported quarter.

Key Factors to Note

TreeHouse Foods’ second-quarter results are likely to reflect the impact of lower retail demand owing to tough comparisons with the year-ago period’s stock-hoarding trends. Again, pandemic-related expenses and commodity cost inflation along with any increase in labor and freight charges might have weighed on the to-be-reported quarter’s bottom line.

The company, nonetheless, has begun undertaking increased pricing actions to counter the inflationary pressure. Apart from this, the away-from-home sector is witnessing a gradual recovery, thanks to mass inoculation drive and relaxation in pandemic-induced restrictions. This, in turn, give out favorable indications for the company’s foodservice business.

It has been focusing on organic foods owing to consumers’ shifting preference for foods described as being “better for you,” which include fresh or freshly-prepared foods as well as natural, organic, or specialty foods. Moreover, the inclusion of the Riviana pasta business (purchased in December 2020) is contributing to the company’s top line. We believe that such trends are likely to have aided the company’s second-quarter performance.

 

TreeHouse Foods, Inc. Price, Consensus and EPS Surprise

TreeHouse Foods, Inc. Price, Consensus and EPS Surprise

TreeHouse Foods, Inc. price-consensus-eps-surprise-chart | TreeHouse Foods, Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict a beat for TreeHouse Foods this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TreeHouse Foods has a Zacks Rank #3 but an Earnings ESP of 0.00%.

3 Stocks With a Favorable Combination

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Darling Ingredients (DAR - Free Report) has an Earnings ESP of +10.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

B&G Foods (BGS - Free Report) has an Earnings ESP of +6.82% and a Zacks Rank #3.

Kellogg (K - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank #3.

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