TreeHouse Foods Inc. (NYSE:THS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
TreeHouse Foods Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 8.33% to $0.65 in the quarter versus EPS of $0.60 in the year-earlier quarter.
Revenue: Decreased 0.21% to $526.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: TreeHouse Foods Inc. reported adjusted EPS income of $0.65 per share. By that measure, the company beat the mean analyst estimate of $0.63. It missed the average revenue estimate of $544.69 million.
Quoting Management: “Despite the volume challenges across the food industry, we continued to make a great deal of progress in the second quarter and are encouraged by our successes, particularly in our single service beverage business, which was a key driver for our North American Retail Grocery segment,” said Sam K. Reed, Chairman, President and Chief Executive Officer. “Internally, our teams remain steadfast in the pursuit of operating simplification, gross margin improvement and distribution system savings. As a result, all three of our business segments posted direct operating income improvements in both dollars and percentages, a testament to our ability to deliver savings across the whole of TreeHouse.”
Key Stats (on next page)…
Revenue decreased 2.56% from $540.11 million in the previous quarter. EPS decreased 12.16% from $0.74 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.78 and has not changed. For the current year, the average estimate is a profit of $3.09, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)