Factors Likely to Impact TreeHouse Foods' (THS) Q2 Earnings
TreeHouse Foods, Inc. THS is set to report second-quarter 2023 earnings on Aug 7, before the opening bell. The Zacks Consensus Estimate for TreeHouse Foods’ quarterly bottom line has been unchanged in the past 30 days at 40 cents per share. This shows an improvement from the loss per share of 4 cents reported in the year-earlier quarter.
The Zacks Consensus Estimate for revenues is pegged at $829.9 million for the quarter under review, suggesting a year-over-year decline of 30.7%.
The manufacturer and distributor of private-label packaged foods and beverages has a trailing four-quarter earnings surprise of 49.3%, on average. TreeHouse Foods delivered an earnings surprise of 74.4% in the last reported quarter.
TreeHouse Foods, Inc. Price, Consensus and EPS Surprise
TreeHouse Foods, Inc. price-consensus-eps-surprise-chart | TreeHouse Foods, Inc. Quote
Key Factors to Consider
TreeHouse Foods is likely to have experienced gains from its effective pricing strategies. Strong emphasis on saving initiatives is also likely to have aided the company amid an inflationary environment. Management has been undeterred by labor shortages and supply-chain disruptions, as the resilient demand for private-label products has been driving growth.
TreeHouse Foods has been benefiting from contributions from acquisitions. In June 2023, the company completed the acquisition of Farmer Brothers Company's Northlake, TX, coffee facility and non-Direct Store Delivery coffee business (known as Direct Ship). In April 2023, TreeHouse Foods added seasoned pretzel capabilities to its portfolio. These buyouts are anticipated to have positively impacted the top line.
Second-quarter revenues are expected between $810 and $840 million, indicating flat to 4% growth year over year. Historically, the second quarter represents the company's seasonally lowest volume quarter, but improved supply-chain operations in the first quarter enabled increased production and the fulfillment of certain customer orders originally planned for the second quarter. TreeHouse anticipates achieving an adjusted EBITDA of $65-$80 million in the second quarter, with an expected adjusted EBITDA margin improvement of 130-280 basis points from that reported in the second quarter of 2022.
What the Zacks Model Unveils
Our proven model does not 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. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
TreeHouse Foods has an Earnings ESP of 0.00% and a Zacks Rank of 1 at present.
Stocks With a Favorable Combination
Here are some companies, which, according to our model, have the right combination of elements to deliver an earnings beat:
Coty COTY currently has an Earnings ESP of +20.00% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
COTY is likely to register a top-line improvement when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.32 billion, indicating growth of 13.4% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 2 cents suggests a significant increase from the loss per share of 1 cent reported in the year-ago quarter. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Celsius Holdings CELH currently has an Earnings ESP of +50.64% and a Zacks Rank #2. CELH is likely to register top-line growth when it reports second-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $278.9 million, which suggests growth of 81.1% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Celsius Holdings’ quarterly earnings has been unchanged in the past 30 days at 31 cents per share, suggesting growth of 158.3% from the year-ago quarter’s reported number. CELH delivered an Earnings ESP of +81.8% in the last reported quarter.
Kellogg’s K has an Earnings ESP of +1.92% and a Zacks Rank #3 at present. The company is expected to report second-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.05 billion, which suggests growth of 4.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg’s quarterly earnings has been unchanged in the past 30 days to $1.11 per share, suggesting a decline of 5.9% from the year-ago quarter’s reported number. K has a trailing four-quarter earnings surprise of 9.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kellogg Company (K) : Free Stock Analysis Report
TreeHouse Foods, Inc. (THS) : Free Stock Analysis Report
Coty (COTY) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
