Why TreeHouse Foods (THS) Shares Are Getting Obliterated Today
What Happened:
Shares of private label food company TreeHouse Foods (NYSE:THS) fell 14.8% in the morning session after the company reported fourth-quarter results, with organic revenue coming in weak and below expectation. The company highlighted a "difficult consumer environment in the food and beverage industry." Also, its revenue and adjusted EBITDA guidance for the coming year both missed analysts' expectations. Management expects growth in the first half of the year to be impacted by weakness in the broth business. Overall, the results could have been better.
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What is the market telling us:
TreeHouse Foods's shares are not very volatile than the market average and over the last year have had only 4 moves greater than 5%. Moves this big are very rare for TreeHouse Foods and that is indicating to us that this news had a significant impact on the market's perception of the business.
TreeHouse Foods is down 13.8% since the beginning of the year, and at $36.47 per share it is trading 32.8% below its 52-week high of $54.26 from May 2023. Investors who bought $1,000 worth of TreeHouse Foods's shares 5 years ago would now be looking at an investment worth $608.00.
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