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TreeHouse Foods (THS) to Post Q1 Earnings: Things to Note

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TreeHouse Foods, Inc. (THS - Free Report) is likely to witness an increase in the top line from the year-ago quarter’s reported figure when it reports first-quarter 2022 earnings on May 9. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,092 million, suggesting a rise of 2.6% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for TreeHouse Foods’ quarterly bottom line has been unchanged in the past 30 days at a loss of 55 cents per share. THS had delivered earnings per share of 36 cents in the year-ago quarter.

The manufacturer and distributor of private label packaged foods and beverages has a trailing four-quarter earnings surprise of 11.9%, on average. TreeHouse Foods delivered an earnings surprise of 37.5% in the last reported quarter.

Key Factors to Consider

TreeHouse Foods has been grappling with commodity cost inflation and supply-chain hurdles for a while, causing higher labor costs and supply shortages. Freight cost inflation remains an added deterrent. These factors are likely to limit THS’ ability to meet high demand conditions. Such headwinds might have adversely impacted THS’ performance in the to-be-reported quarter.

On its last earnings call, management expected labor crunch and supply-chain woes to hurt revenue and profits in the first half of 2022. TreeHouse Foods had anticipated a further decline in the adjusted EBITDA margin (both sequentially and year over year) for first-quarter 2022.

On the positive front, TreeHouse Foods has been benefiting from the pasta acquisition, higher demand from food-away-from-home and co-manufacturing sales. THS is also focused on expanding its product offerings. Management continues undertaking pricing actions, which coupled with other tailwinds, might have boosted sales 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 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.

TreeHouse Foods, Inc. Price and EPS Surprise

TreeHouse Foods, Inc. Price and EPS Surprise

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

TreeHouse Foods has a Zacks Rank #3 but its Earnings ESP of 0.00% in the combination makes surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Greenlane Holdings (GNLN - Free Report) currently has an Earnings ESP of +16.00% and a Zacks Rank #2. GNLN is anticipated to register top-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Greenlane Holdings’ quarterly revenues is pegged at $52.6 million, indicating an improvement of 54.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Greenlane Holdings’ bottom line is pegged at a loss of 8 cents a share, which shows improvement from a loss of 14 cents recorded in the prior-year quarter. GNLN delivered a negative earnings surprise of 57.6%, on average, in the trailing four quarters.

Celsius Holdings (CELH - Free Report) currently has an Earnings ESP of +12.50% and a Zacks Rank #3. CELH is expected to register top- and bottom-line growth when it reports the first-quarter 2022 numbers. The Zacks Consensus Estimate for CELH’s quarterly revenues is pegged at $117.6 million, which suggests growth of 135% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for Celsius Holdings’ quarterly earnings has moved a penny up in the past 30 days to 3 cents per share, suggesting a significant improvement from a penny recorded in the year-ago quarter. CELH delivered an earnings beat of 156.3%, on average, in the trailing four quarters.

Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +1.29% and a Zacks Rank of 3. HRL is likely to register an increase in the top and the bottom line when it reports second-quarter fiscal 2022 results. The consensus mark for HRL's quarterly revenues is pegged at $3 billion, suggesting a rise of 15.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate has moved a penny south to 46 cents per share in the past 30 days. The consensus estimate indicates 9.5% growth from 42 cents reported in the year-ago quarter. HRL delivered an earnings beat of 1.7%, on average, in the trailing four quarters.

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