THS - TreeHouse Foods falls after reporting earnings forecasts

2023-08-07 13:15:14 ET

TreeHouse Foods ( NYSE: THS ) fell 3.4% on Monday after the company reported earnings and forecasts.

For the second quarter, THS reported non-GAAP EPS of $0.42 in-line with expectations and revenue of $843.6M, which beat the average analyst estimate by $11.76M.

The Oak Brook, Ill.-based company expects third quarter revenue in the range of $950M to $970M versus the consensus of $930.05M. Third quarter adjusted EBITDA should come in between $81M to $89M, representing approximately 11% year-over-year growth at the midpoint.

For the fourth quarter, the company expects $5M to $7M in temporary operating expenses from the expected wind down of substantial portions of a transition services agreement.

TreeHouse raised its full year net sales outlook to 7.5% to 9.5% year-over-year growth.

"The transformative actions that we've taken have more strongly positioned TreeHouse in higher-growth, higher-margin categories and are reflected in our second quarter and first half results," Chief Executive Officer Steve Oakland said in a statement.

"With favorable industry trends and a clear strategy, we are confident in achieving our near- and long-term financial goals and see a long runway for continued growth and value creation."

The stock has four Strong Buys from Wall Street analysts and three Holds.

THS is up 3% so far this year and down 2.6% over the past five days.

More on food stocks:

• TreeHouse Foods reports Q2 earnings; initiates Q3 and raises FY23 outlook
• Food inflation is moderating - watch these stocks
• Packaged food stocks will face tricky sales growth comparisons after a year of inflation

For further details see: