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Factors to Note as TreeHouse Foods (THS) Readies for Q3 Earnings
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TreeHouse Foods, Inc. (THS - Free Report) is likely to display year-over-year growth in the top line, when it reports third-quarter 2021 earnings on Nov 8. The Zacks Consensus Estimate for revenues is pegged at $1,072 million, suggesting a rise of 2.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained stable over the past 30 days at 49 cents per share, which, however, indicates a decline of around 31% from the figure reported in the prior-year period. In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate. This manufacturer and distributer of private label packaged foods and beverages has a trailing four-quarter earnings surprise of 8.4%, on average.
TreeHouse Foods, Inc. Price, Consensus and EPS Surprise
The company has been grappling with cost woes, which remains a threat to its margins. Management, on its second-quarter earnings call, said that it expects further rise in the commodity, freight, and packaging costs. The company predicts additional cost inflation of $40 million in 2021, which is unlikely to be countered by pricing. Although TreeHouse Foods is undertaking pricing actions to battle the elevated input costs, it expects a timing lag as to when benefits from these efforts are realized. For the third quarter of 2021, management projects adjusted earnings per share from continuing operations of 45-60 cents.
Nonetheless, the company benefited from higher demand for away-from-home food; distribution gains as well as the sale of new products in the second quarter. With things opening up and restrictions being lifted, we believe the away-from-home food demand is likely to have served as a tailwind in the quarter under review as well. Apart from these, gains from the buyout of the majority of Riviana Foods’ U.S. branded pasta portfolio (in December 2020) is likely to have contributed to the quarterly 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 currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
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 this season.
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Factors to Note as TreeHouse Foods (THS) Readies for Q3 Earnings
TreeHouse Foods, Inc. (THS - Free Report) is likely to display year-over-year growth in the top line, when it reports third-quarter 2021 earnings on Nov 8. The Zacks Consensus Estimate for revenues is pegged at $1,072 million, suggesting a rise of 2.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained stable over the past 30 days at 49 cents per share, which, however, indicates a decline of around 31% from the figure reported in the prior-year period. In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate. This manufacturer and distributer of private label packaged foods and beverages has a trailing four-quarter earnings surprise of 8.4%, on average.
TreeHouse Foods, Inc. Price, Consensus and EPS Surprise
TreeHouse Foods, Inc. price-consensus-eps-surprise-chart | TreeHouse Foods, Inc. Quote
Key Factors to Note
The company has been grappling with cost woes, which remains a threat to its margins. Management, on its second-quarter earnings call, said that it expects further rise in the commodity, freight, and packaging costs. The company predicts additional cost inflation of $40 million in 2021, which is unlikely to be countered by pricing. Although TreeHouse Foods is undertaking pricing actions to battle the elevated input costs, it expects a timing lag as to when benefits from these efforts are realized. For the third quarter of 2021, management projects adjusted earnings per share from continuing operations of 45-60 cents.
Nonetheless, the company benefited from higher demand for away-from-home food; distribution gains as well as the sale of new products in the second quarter. With things opening up and restrictions being lifted, we believe the away-from-home food demand is likely to have served as a tailwind in the quarter under review as well. Apart from these, gains from the buyout of the majority of Riviana Foods’ U.S. branded pasta portfolio (in December 2020) is likely to have contributed to the quarterly 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 currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
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 this season.
Tyson Foods (TSN - Free Report) has an Earnings ESP of +2.51% and sports a Zacks Rank #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Coty Inc. (COTY - Free Report) has an Earnings ESP of +50.00% and carries a Zacks Rank of 3, currently.
Hormel Foods (HRL - Free Report) has an Earnings ESP of +1.59% and currently holds a Zacks Rank #3.