TreeHouse Foods (THS) Q4 Earnings Coming Up: What to Expect?
TreeHouse Foods, Inc. THS is likely to register a top-and-bottom-line decline when it reports fourth-quarter 2023 earnings on Feb 16. The Zacks Consensus Estimate for revenues is pegged at $926.9 million, suggesting a decrease of 7% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 71 cents per share, which indicates a decline of 27.6% from the year-ago quarter’s reported figure. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
Factors to Consider
TreeHouse Foods has been battling escalated costs for a while now. In the third quarter of 2023, the gross margin declined 10 bps year over year, primarily due to supply-chain disruptions caused by a voluntary product recall, which resulted in a decrease in its gross profit. Also, adjusted net sales were adversely impacted by approximately $15 million due to a voluntary product recall and a discrete supply-chain disruption later in the quarter.
For the fourth quarter of 2023, revenues are projected in the band of $910-$940 million, implying a 3% year-over-year decline at the midpoint, primarily due to an anticipated decline from the voluntary product recall and supply-chain disruptions. The company expects adjusted EBITDA in the range of $103-$113 million for the fourth quarter, suggesting a 9% year-over-year decline at the midpoint.
TreeHouse Foods, Inc. Price, Consensus and EPS Surprise
TreeHouse Foods, Inc. price-consensus-eps-surprise-chart | TreeHouse Foods, Inc. Quote
Other than the abovementioned headwinds, temporary operating expenses, ranging from $5 million to $7 million, are expected from the planned wind-down of significant portions of the transition services agreement related to the Meal Preparation divestiture.
However, TreeHouse Foods’ actions to focus on greater-margin private-label snacking and beverage categories have been aiding. Efficient pricing efforts have also been working well for the company. Growth in third-quarter net sales was mainly driven by favorable pricing actions undertaken to recover commodity inflation. Pricing is likely to aid fourth-quarter results as well. Apart from this, the company has been actively pursuing margin improvement through TMOS and supply-chain initiatives.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for TreeHouse Foods this time. 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, which is not the case here.
TreeHouse Foods has an Earnings ESP of 0.00%, while it carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:
Inter Parfums IPAR currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings of 35 cents suggests a decrease of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
The Kraft Heinz Company KHC currently has an Earnings ESP of +0.14% and a Zacks Rank #2. KHC is likely to record a top-and-bottom-line decline when it reports fourth-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at nearly $7 billion, indicating a 5.6% drop from the prior-year quarter’s actual. The consensus mark for earnings is pegged at 77 cents per share, implying a 9.4% decrease from that reported in the year-ago quarter. KHC has a trailing four-quarter earnings surprise of 9.9%, on average.
Coca-Cola KO has an Earnings ESP of +0.70% and a Zacks Rank of 3. KO is likely to register top-and-bottom-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Coca-Cola’s quarterly revenues is pegged at $10.6 billion, suggesting growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days at 48 cents per share. The consensus estimate for earnings suggests 6.7% growth from the year-ago quarter’s reported number. KO delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
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CocaCola Company (The) (KO) : Free Stock Analysis Report
TreeHouse Foods, Inc. (THS) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
