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TreeHouse Foods (THS) Queued for Q4 Earnings: Things to Note
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TreeHouse Foods, Inc. (THS - Free Report) is likely to witness a year-over-year decline in the top and the bottom line when it reports fourth-quarter 2021 earnings on Feb 14. The Zacks Consensus Estimate for revenues is pegged at $1,122 million, suggesting a decline of 4.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained stable over the past 30 days at 8 cents per share, indicating a slump of 92.5% from the figure reported in the prior-year period. The manufacturer and distributor of private label packaged foods and beverages has a trailing four-quarter earnings surprise of 2.7%, on average. TreeHouse Foods delivered a negative earnings surprise of 6.1% in the last reported quarter.
The Zacks Consensus Estimate for 2021 revenues is pegged at $4.3 billion, suggesting a decline of 1.5% from the prior-year quarter’s reported figure. The consensus mark for 2021 earnings per share stands at $1.17, indicating a 57.1% slump from the figure reported in the year-ago period.
TreeHouse Foods, Inc. Price, Consensus and EPS Surprise
TreeHouse Foods is grappling with commodity cost inflation as well as supply-chain headwinds, causing higher labor costs and supply shortages. Such headwinds adversely impacted the company’s performance during the last reported quarter. In the third quarter of 2021, THS’s gross margin came in at 16.3%, contracting 170 basis points from the year-ago quarter’s figure. On its third-quarter earnings call, management stated that it expects a further increase in input costs. The company predicts additional cost inflation of $125 million in 2021.
Although TreeHouse Foods is undertaking pricing actions to battle elevated input costs, it might not be sufficient to fully offset the rise in input costs. On its last earnings call, TreeHouse Foods lowered the upper limit of its sales view and curtailed adjusted earnings expectations for 2021. For the year, net sales are anticipated in the range of $4.20-$4.325 billion compared with the $4.20-$4.45 billion range expected earlier. Management expects current operating constraints to limit the company’s ability to meet high demand conditions.
Adjusted earnings from continuing operations are expected between $1.08 and $1.28 per share, down from the previous-guided range of $2.00-$2.50 per share. The bottom line is likely to be affected by escalating inflationary trends as well as higher costs for labor and supply-chain disruptions. Management also provided guidance for the fourth quarter. Fourth-quarter net sales are expected in the range of $1.04-$1.16 billion. The company’s top line reflects a decline from $1.18 million reported in the year-ago quarter.
That said, the company has been benefiting from higher demand for away-from-home food as well as the sale of new products. With outdoor dining resuming and restrictions lifted, away-from-home food demand is likely to have served as a tailwind in the quarter under review.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for TreeHouse Foods this time. 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, which is not the case here.
TreeHouse Foods currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Companies Likely to Post a Beat
Grocery Outlet Holding (GO - Free Report) has an Earnings ESP of +8.45% and a Zacks Rank #3. Grocery Outlet is anticipated to register a top-and bottom-line decline when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for GO’s quarterly revenues is pegged at $774 million, indicating a decrease of nearly 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Grocery Outlet’s bottom line has remained unchanged in the past 30 days at 20 cents per share. However, the consensus estimate for earnings suggests a decline of 16.7% from the year-ago quarter’s reported figure. Grocery Outlet delivered an earnings beat of 4.5%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Service Corporation International (SCI - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #3. Service Corporation is anticipated to register growth in the top line but a decline in the bottom line when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly revenues is pegged at about $1 billion, indicating a rise of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Service Corporation’s bottom line has jumped 11.1% in the past 30 days to $1.00 per share. The consensus estimate suggests a drop of 11.5% from the year-ago quarter’s reported figure. SCI has delivered an earnings beat of 45.6%, on average, in the trailing four quarters.
Target (TGT - Free Report) has an Earnings ESP of +0.50% and a Zacks Rank #3. It is anticipated to register a top-line increase when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for Target’s quarterly revenues is pegged at $31.5 billion, indicating growth of 11.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Target’s bottom line has been stable in the past seven days at $2.85 per share, which suggests a rise of 6.7% from the year-ago quarter’s reported figure. TGT delivered an earnings beat of 19.7%, on average, in the trailing four quarters.
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TreeHouse Foods (THS) Queued for Q4 Earnings: Things to Note
TreeHouse Foods, Inc. (THS - Free Report) is likely to witness a year-over-year decline in the top and the bottom line when it reports fourth-quarter 2021 earnings on Feb 14. The Zacks Consensus Estimate for revenues is pegged at $1,122 million, suggesting a decline of 4.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained stable over the past 30 days at 8 cents per share, indicating a slump of 92.5% from the figure reported in the prior-year period. The manufacturer and distributor of private label packaged foods and beverages has a trailing four-quarter earnings surprise of 2.7%, on average. TreeHouse Foods delivered a negative earnings surprise of 6.1% in the last reported quarter.
The Zacks Consensus Estimate for 2021 revenues is pegged at $4.3 billion, suggesting a decline of 1.5% from the prior-year quarter’s reported figure. The consensus mark for 2021 earnings per share stands at $1.17, indicating a 57.1% slump from the figure reported in the year-ago period.
TreeHouse Foods, Inc. Price, Consensus and EPS Surprise
TreeHouse Foods, Inc. price-consensus-eps-surprise-chart | TreeHouse Foods, Inc. Quote
Key Factors to Consider
TreeHouse Foods is grappling with commodity cost inflation as well as supply-chain headwinds, causing higher labor costs and supply shortages. Such headwinds adversely impacted the company’s performance during the last reported quarter. In the third quarter of 2021, THS’s gross margin came in at 16.3%, contracting 170 basis points from the year-ago quarter’s figure. On its third-quarter earnings call, management stated that it expects a further increase in input costs. The company predicts additional cost inflation of $125 million in 2021.
Although TreeHouse Foods is undertaking pricing actions to battle elevated input costs, it might not be sufficient to fully offset the rise in input costs. On its last earnings call, TreeHouse Foods lowered the upper limit of its sales view and curtailed adjusted earnings expectations for 2021. For the year, net sales are anticipated in the range of $4.20-$4.325 billion compared with the $4.20-$4.45 billion range expected earlier. Management expects current operating constraints to limit the company’s ability to meet high demand conditions.
Adjusted earnings from continuing operations are expected between $1.08 and $1.28 per share, down from the previous-guided range of $2.00-$2.50 per share. The bottom line is likely to be affected by escalating inflationary trends as well as higher costs for labor and supply-chain disruptions.
Management also provided guidance for the fourth quarter. Fourth-quarter net sales are expected in the range of $1.04-$1.16 billion. The company’s top line reflects a decline from $1.18 million reported in the year-ago quarter.
That said, the company has been benefiting from higher demand for away-from-home food as well as the sale of new products. With outdoor dining resuming and restrictions lifted, away-from-home food demand is likely to have served as a tailwind in the quarter under review.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for TreeHouse Foods this time. 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, which is not the case here.
TreeHouse Foods currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Companies Likely to Post a Beat
Grocery Outlet Holding (GO - Free Report) has an Earnings ESP of +8.45% and a Zacks Rank #3. Grocery Outlet is anticipated to register a top-and bottom-line decline when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for GO’s quarterly revenues is pegged at $774 million, indicating a decrease of nearly 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Grocery Outlet’s bottom line has remained unchanged in the past 30 days at 20 cents per share. However, the consensus estimate for earnings suggests a decline of 16.7% from the year-ago quarter’s reported figure. Grocery Outlet delivered an earnings beat of 4.5%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Service Corporation International (SCI - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #3. Service Corporation is anticipated to register growth in the top line but a decline in the bottom line when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly revenues is pegged at about $1 billion, indicating a rise of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Service Corporation’s bottom line has jumped 11.1% in the past 30 days to $1.00 per share. The consensus estimate suggests a drop of 11.5% from the year-ago quarter’s reported figure. SCI has delivered an earnings beat of 45.6%, on average, in the trailing four quarters.
Target (TGT - Free Report) has an Earnings ESP of +0.50% and a Zacks Rank #3. It is anticipated to register a top-line increase when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for Target’s quarterly revenues is pegged at $31.5 billion, indicating growth of 11.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Target’s bottom line has been stable in the past seven days at $2.85 per share, which suggests a rise of 6.7% from the year-ago quarter’s reported figure. TGT delivered an earnings beat of 19.7%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.