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TreeHouse Foods (THS) Lined Up for Q2 Earnings: Things to Note

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TreeHouse Foods, Inc. (THS - Free Report) is likely to report an increase in the top line from the year-ago quarter’s reported figure when it reports second-quarter 2022 earnings on Aug 8. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,102 million, suggesting a rise of 10% 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 17 cents per share. Earnings per share of 26 cents were delivered in the year-ago quarter.

The manufacturer and distributor of private label packaged foods and beverages has a trailing four-quarter earnings surprise of 26%, on average. TreeHouse Foods delivered an earnings surprise of 72.7% in the last reported quarter.

Key Factors to Consider

TreeHouse Foods’ quarterly performance is most likely to have gained from its efficient pricing efforts and sturdy demand for the private label products. Also, THS is benefiting from the pasta acquisition, higher demand from food-away-from-home and co-manufacturing sales channels. THS is also focused on expanding its product offerings. All these tailwinds might have boosted sales in the quarter under review.

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

On its last earnings call, management had expected labor crunch and supply-chain woes to hurt revenues and profits in the first half of 2022. TreeHouse Foods had anticipated a flat to little sequential improvement in the adjusted EBITDA margin for the second quarter of 2022.

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 has a Zacks Rank #2 but its Earnings ESP of 0.00% in the combination makes surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +3.55% and a Zacks Rank #2. GO is likely to register a bottom-line improvement from the year-ago quarter’s reported figure when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 24 cents suggests a marginal improvement from 23 cents reported in the year-ago quarter.

Grocery Outlet's top line is expected to rise from the year-earlier period’s actuals. The Zacks Consensus Estimate for quarterly revenues is pegged at $859.6 million, which indicates an improvement of 10.8% from the figure reported in the prior-year quarter. GO has a trailing four-quarter earnings surprise of 4.8%, on average.

Celsius Holdings (CELH - Free Report) currently has an Earnings ESP of +17.39% and a Zacks Rank of 1. CELH is expected to register top-and bottom-line growth from the prior-year quarter’s reported number when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for CELH’s quarterly revenues is pegged at $149.8 million, which suggests growth of 130% 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 8 cents per share, suggesting an improvement of 60% from the year-ago quarter’s tally. CELH delivered an earnings beat of 206.3%, on average, in the trailing four quarters.

Ollie's Bargain Outlet (OLLI - Free Report) currently has an Earnings ESP of +6.06% and a Zacks Rank of 3. OLLI is likely to register a rise in the top line from the prior-year fiscal period’s reported number when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for OLLI’s quarterly revenues is pegged at $457.5 million, which suggests a jump of 10% from the figure reported in the prior-year quarter.

The consensus mark for Ollie's Bargain’s quarterly earnings has been unchanged at 33 cents per share in the past 30 days. The consensus estimate for OLLI’s quarterly earnings suggests a decline of 36.5% from the year-ago fiscal quarter’s reported figure. OLLI witnessed a negative earnings surprise of 17.1%, on average, in the trailing four quarters.

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