Stock Story -
Private label food company TreeHouse Foods (NYSE:THS) will be reporting earnings tomorrow morning. Here's what to look for.
TreeHouse Foods beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $820.7 million, down 3.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' organic revenue growth estimates but a miss of analysts' gross margin estimates.
Is TreeHouse Foods a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting TreeHouse Foods's revenue to decline 2.3% year on year to $785.4 million, a reversal from the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. TreeHouse Foods has missed Wall Street's revenue estimates six times over the last two years.
Looking at TreeHouse Foods's peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kellanova's revenues decreased 4.7% year on year, beating analysts' expectations by 1.5%, and Post (NYSE:POST) reported revenues up 4.7%, falling short of estimates by 3.4%. Kellanova traded up 8.3% following the results while Post was also up 3.1%.
Read the full analysis of Kellanova's and Post's results on StockStory.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 4% on average over the last month. TreeHouse Foods is up 4.9% during the same time and is heading into earnings with an average analyst price target of $37.3 (compared to the current share price of $39.31).
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