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Treehouse Foods (THS) Q4 Earnings: What's in the Cards?
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Treehouse Foods, Inc. (THS - Free Report) , manufacturer of packaged foods and beverages, is slated to report fourth-quarter 2016 results, before the opening bell on Feb 9. The question lingering in investors’ minds is, whether the company will be able to deliver a positive earnings surprise in the to-be-reported quarter.
After delivering in-line earnings for the second quarter, the company posted a negative earnings surprise of 9.1% in the third quarter. However, the company outpaced the Zacks Consensus Estimate by an average of 3.9% in the trailing four quarters.
Treehouse Foods forms part of the Consumer Staples sector. As per the latest Earnings Preview,, we note that Consumer Staples sector’s earnings growth looks impressive. Total earnings for the sector are estimated to rise 9.7%, whereas revenues are projected to improve 4.1%.
Let’s delve deeper how things are shaping up for this announcement.
What the Zacks Model Unveils?
Our proven model does not conclusively show that Treehouse Foods is likely to beat earnings estimates this quarter. This is because a stock needs to have both positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Treehouse Foods, Inc. Price, Consensus and EPS Surprise
Treehouse Foods has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.08. However, the company’s Zacks Rank #3 increases the predictive power of ESP, but we need to have a positive ESP to be confident about an earnings surprise. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Influencing the Quarter
Treehouse Foods has a diverse customer base, including the leading grocery and foodservice operators in the United States and Canada, as well as a variety of customers that purchase bulk products for industrial food applications. Further, the company focuses on healthy and organic products to boost its top line, alongside focusing on consumer’s needs by developing new formulations, packaging and sizes. In addition, the company undertakes acquisitions in a bid to drive future growth.
Coming to the share price movement, Treehouse Foods has outperformed the Zacks categorized Food–Miscellaneous/Diversified industry in the last three months. While the industry fell 2.6%, the stock gave a positive return of nearly 9.9%, in the said time period.
However, the company posted weaker-than-expected results for the third quarter, wherein the top and bottom lines missed the Zacks Consensus Estimate. Furthermore, earnings declined 18.6% from the year-ago period, owing to lower gross margin related to the acquisition of the Private Brands business.
Going forward, the company expects the lower sales trends to continue in 2016. Management lowered its earnings forecast for 2016, due to lower-than-expected third-quarter sales from the Private Brands business and envisions the same in the range of $2.80–$2.85 per share versus $3.00–$3.10, projected earlier. Moreover, its fourth-quarter adjusted earnings are expected to be in the range of $1.07−$1.12 per share.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Coty Inc. (COTY - Free Report) has an Earnings ESP of +8.33% and a Zacks Rank #3.
Dean Foods Company has an Earnings ESP of +2.44% and a Zacks Rank #3.
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Treehouse Foods (THS) Q4 Earnings: What's in the Cards?
Treehouse Foods, Inc. (THS - Free Report) , manufacturer of packaged foods and beverages, is slated to report fourth-quarter 2016 results, before the opening bell on Feb 9. The question lingering in investors’ minds is, whether the company will be able to deliver a positive earnings surprise in the to-be-reported quarter.
After delivering in-line earnings for the second quarter, the company posted a negative earnings surprise of 9.1% in the third quarter. However, the company outpaced the Zacks Consensus Estimate by an average of 3.9% in the trailing four quarters.
Treehouse Foods forms part of the Consumer Staples sector. As per the latest Earnings Preview,, we note that Consumer Staples sector’s earnings growth looks impressive. Total earnings for the sector are estimated to rise 9.7%, whereas revenues are projected to improve 4.1%.
Let’s delve deeper how things are shaping up for this announcement.
What the Zacks Model Unveils?
Our proven model does not conclusively show that Treehouse Foods is likely to beat earnings estimates this quarter. This is because a stock needs to have both positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Treehouse Foods, Inc. Price, Consensus and EPS Surprise
Treehouse Foods, Inc. Price, Consensus and EPS Surprise | Treehouse Foods, Inc. Quote
Treehouse Foods has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.08. However, the company’s Zacks Rank #3 increases the predictive power of ESP, but we need to have a positive ESP to be confident about an earnings surprise. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Influencing the Quarter
Treehouse Foods has a diverse customer base, including the leading grocery and foodservice operators in the United States and Canada, as well as a variety of customers that purchase bulk products for industrial food applications. Further, the company focuses on healthy and organic products to boost its top line, alongside focusing on consumer’s needs by developing new formulations, packaging and sizes. In addition, the company undertakes acquisitions in a bid to drive future growth.
Coming to the share price movement, Treehouse Foods has outperformed the Zacks categorized Food–Miscellaneous/Diversified industry in the last three months. While the industry fell 2.6%, the stock gave a positive return of nearly 9.9%, in the said time period.
However, the company posted weaker-than-expected results for the third quarter, wherein the top and bottom lines missed the Zacks Consensus Estimate. Furthermore, earnings declined 18.6% from the year-ago period, owing to lower gross margin related to the acquisition of the Private Brands business.
Going forward, the company expects the lower sales trends to continue in 2016. Management lowered its earnings forecast for 2016, due to lower-than-expected third-quarter sales from the Private Brands business and envisions the same in the range of $2.80–$2.85 per share versus $3.00–$3.10, projected earlier. Moreover, its fourth-quarter adjusted earnings are expected to be in the range of $1.07−$1.12 per share.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Pinnacle Foods Inc. has an Earnings ESP of +1.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Coty Inc. (COTY - Free Report) has an Earnings ESP of +8.33% and a Zacks Rank #3.
Dean Foods Company has an Earnings ESP of +2.44% and a Zacks Rank #3.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>