TreeHouse Foods is a prominent manufacturer and supplier of a diverse range of private label food products, catering to grocery retailers, food service providers, and other businesses
The company specializes in producing snacks, meals, beverages, and various other food items, focusing on quality and innovation to meet the evolving preferences of consumers. With a commitment to sustainability and a strong emphasis on customer collaboration, TreeHouse Foods strives to deliver tailored solutions in the competitive food industry, enabling its partners to offer appealing and accessible products to their customers.
Over the past six months, TreeHouse Foods’s shares (currently trading at $33.40) have posted a disappointing 11.6% loss, well below the S&P 500’s 4.2% gain. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how shelf-stable food stocks fared in Q3, starting with Hormel Foods (NYSEHRL).
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the shelf-stable food industry, including J&J Snack Foods (NASDAQJJSF) and its peers.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the shelf-stable food industry, including TreeHouse Foods (NYSETHS) and its peers.
Shares of private label food company TreeHouse Foods (NYSETHS)
fell 17.3% in the morning session after the company reported weak third-quarter results that missed across key operating metrics we track. Revenue and EBITDA fell below Wall Street's expectations, and the company also reported underwhelming earnings per share, which came in roughly in line.
Private label food company TreeHouse Foods (NYSETHS) fell short of the market’s revenue expectations in Q3 CY2024, with sales falling 2.8% year on year to $839.1 million. Next quarter’s revenue guidance of $915 million underwhelmed, coming in 5.7% below analysts’ estimates. Its non-GAAP profit of $0.74 per share was in line with analysts’ consensus estimates.
TreeHouse Foods Q3 sales decline 2.8% YoY, adjusted EPS $0.74 vs $0.75 consensus. Q4 net sales expected at $900M-$930M, 2024 sales and EBITDA outlook lowered.
TreeHouse Foods faces a dip in shares following revenue drop and a missed EPS estimate. Q1 FY24 sales hit $820.70 million, exceeding expectations despite the decline. The decrease stems from planned exits in coffee and bakery segments, and a facility restart, contributing to a 440 basis points Y/Y contraction in gross margin.
U.S. stocks are likely to extend their gains as major index futures are modestly higher on Monday. Strong earnings reports continue to support the market, with S&P 500 earnings expected to grow by 5% year-over-year — the highest rate since Q2 2022.
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the "Extreme Greed" zone on Friday. U.S. stocks closed lower on Friday, with the Dow Jones index falling more than 100 points during the session.
