TreeHouse Foods (THS) to Post Q3 Earnings: Is a Beat in Store?
TreeHouse Foods, Inc. THS is set to report third-quarter 2023 earnings on Nov 6, before the opening bell. The Zacks Consensus Estimate for TreeHouse Foods’ quarterly bottom line has increased by a penny in the past 30 days to 48 cents per share. This shows an improvement from earnings of 18 cents per share reported in the year-earlier quarter.
The Zacks Consensus Estimate for revenues is pegged at $954.5 million for the quarter under review, suggesting year-over-year growth of 9.1%.
The manufacturer and distributor of private-label packaged foods and beverages has a trailing four-quarter earnings surprise of 31.4%, on average. TreeHouse Foods delivered an earnings surprise of 5% in the last reported quarter.
Key Factors to Consider
TreeHouse Foods is expected to have benefited from solid demand for its snacking, beverages and grocery product categories in the third quarter. Encouraged by the robust demand for private-label products, management has been focused on fulfilling customer orders with enhanced services across most categories. The supply chain normalization is likely to have improved order deliveries, augmenting its performance in the to-be-reported quarter.
The company has always been focused on expanding its product offerings through buyouts. The acquisition of the Farmer Brothers Company's Northlake, TX, coffee facility and Direct Ship coffee business, along with the addition of a seasoned pretzel capability to its portfolio, are anticipated to have positively impacted the company’s top-line performance. Also, its effective pricing strategies and a strong emphasis on cost-saving initiatives are likely to have boosted margins in the quarter under review.
On its last reported quarter's earnings call, TreeHouse Foods projected third-quarter revenues to be in the range of $950-$970 million, implying 10% year-over-year growth at the mid-point. The growth is likely to have been driven by volume/mix, including the volume from the coffee business acquisition. The company expects adjusted EBITDA of $81-$89 million for the quarter, suggesting 11% year-over-year growth at the mid-point.
On the flip side, the company has been bearing the brunt of rising costs and expenses associated with labor and investments in manufacturing facilities. In the first two quarters of 2023, the company’s cost of sales increased by 5.8% on a year-over-year basis. Any deleverage in operating expenses might have hurt the company’s margins and profitability in the quarter under review.
TreeHouse Foods, Inc. Price and EPS Surprise
TreeHouse Foods, Inc. price-eps-surprise | TreeHouse Foods, Inc. Quote
What the Zacks Model Unveils
Our proven model predicts 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.
TreeHouse Foods has an Earnings ESP of +9.47%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
THS sports a Zacks Rank #1.
Other Stocks With the Favorable Combination
Here are some other companies that, according to our model, also have the right combination of elements to deliver an earnings beat:
Dutch Bros Inc. BROS currently has an Earnings ESP of +12.18% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to report a bottom-line decline when it releases its upcoming quarterly results. The Zacks Consensus Estimate for earnings is pinned at 7 cents per share, indicating a decrease of 22.2% from the year-ago quarter’s reported level.
Its revenues are anticipated to have improved year over year. The consensus mark for the same is pegged at $257.2 million, implying a 29.5% increase from that reported in the prior-year period. BROS has a trailing four-quarter average earnings surprise of 44.6%.
Inter Parfums IPAR currently has an Earnings ESP of +0.30% and flaunts a Zacks Rank #1. The company is expected to register a bottom-line increase when it reports third-quarter 2023 results. The Zacks Consensus Estimate for earnings is pinned at $1.33 per share, indicating growth of 2.3% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to have increased year over year. The consensus mark for the same is pegged at $368 million, indicating growth of 31.2% from that reported in the year-ago quarter. IPAR has a trailing four-quarter average earnings surprise of 45.9%.
The Procter & Gamble Company PG currently has an Earnings ESP of +0.08% and a Zacks Rank #2. PG is likely to record top-line growth when it reports first-quarter fiscal 2024 results.
The Zacks Consensus Estimate for revenues is pegged at $21.9 billion, indicating a 5.2% improvement from the prior-year quarter’s actual. The consensus mark for earnings is pinned at $1.71 per share, implying a 7.6% increase from that reported in the year-ago quarter. It has a trailing four-quarter earnings surprise of 3.8%, on average.
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Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
TreeHouse Foods, Inc. (THS) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Dutch Bros Inc. (BROS) : Free Stock Analysis Report
