We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TreeHouse Foods (THS) Queued for Q1 Earnings: What's in Store?
Read MoreHide Full Article
TreeHouse Foods, Inc. (THS - Free Report) is likely to register growth in the top line, when it reports first-quarter 2021 numbers on May 6. The Zacks Consensus Estimate for revenues is pegged at almost $1.1 billion, which indicates an increase of 0.3% from the prior-year quarter’s reported figure
The company expects the bottom line to decline from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for first-quarter earnings is unchanged in the past 30 days at 35 cents per share, projecting a decline of 5.4%. TreeHouse Foods has a trailing four-quarter earnings surprise of 14.1%, on average. Further, it outperformed the Zacks Consensus Estimate by 0.9% in the last reported quarter.
TreeHouse Foods is benefiting from rising demand due to the coronavirus-led increased at-home consumption. To this end, the company’s solid retail demand is yielding. Moreover, it is focused 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. Apart from this, 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 first-quarter performance.
However, increased social distancing and at-home consumption trend amid the pandemic have been hurting the Food Away From Home business. Apart from this, the company is grappling with incremental pandemic-led costs. These include costs associated with higher production shifts, increased sanitization measures, supplemental payments and protective equipment. In its last earnings call, management highlighted that the company is witnessing significant inflation across several agricultural commodities, including items like oils, wheat and oats. Certainly, these factors are likely to have had a negative impact on the to-be-reported quarter’s performance. Also, unfavorable currency movements are a persistent threat to the company’s performance.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for TreeHouse Foods this time around. 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 carries a Zacks Rank #3 and an Earnings ESP of -1.45%.
Stocks With Favorable Combinations
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.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +0.41% and carries a Zacks Rank #3.
Nomad Foods Limited (NOMD - Free Report) currently has an Earnings ESP of +0.73% and carries a Zacks Rank #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022. Click here for the 4 trades >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
TreeHouse Foods (THS) Queued for Q1 Earnings: What's in Store?
TreeHouse Foods, Inc. (THS - Free Report) is likely to register growth in the top line, when it reports first-quarter 2021 numbers on May 6. The Zacks Consensus Estimate for revenues is pegged at almost $1.1 billion, which indicates an increase of 0.3% from the prior-year quarter’s reported figure
The company expects the bottom line to decline from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for first-quarter earnings is unchanged in the past 30 days at 35 cents per share, projecting a decline of 5.4%. TreeHouse Foods has a trailing four-quarter earnings surprise of 14.1%, on average. Further, it outperformed the Zacks Consensus Estimate by 0.9% in the last reported quarter.
TreeHouse Foods, Inc. Price and EPS Surprise
TreeHouse Foods, Inc. price-eps-surprise | TreeHouse Foods, Inc. Quote
Key Factors to Note
TreeHouse Foods is benefiting from rising demand due to the coronavirus-led increased at-home consumption. To this end, the company’s solid retail demand is yielding. Moreover, it is focused 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. Apart from this, 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 first-quarter performance.
However, increased social distancing and at-home consumption trend amid the pandemic have been hurting the Food Away From Home business. Apart from this, the company is grappling with incremental pandemic-led costs. These include costs associated with higher production shifts, increased sanitization measures, supplemental payments and protective equipment. In its last earnings call, management highlighted that the company is witnessing significant inflation across several agricultural commodities, including items like oils, wheat and oats. Certainly, these factors are likely to have had a negative impact on the to-be-reported quarter’s performance. Also, unfavorable currency movements are a persistent threat to the company’s performance.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for TreeHouse Foods this time around. 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 carries a Zacks Rank #3 and an Earnings ESP of -1.45%.
Stocks With Favorable Combinations
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.
Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +16.03% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +0.41% and carries a Zacks Rank #3.
Nomad Foods Limited (NOMD - Free Report) currently has an Earnings ESP of +0.73% and carries a Zacks Rank #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>