Back to top

Image: Bigstock

TreeHouse Foods' Q3 Earnings Coming Up: Things to Note About THS

Read MoreHide Full Article

TreeHouse Foods, Inc. (THS - Free Report) is likely to register top and bottom-line growth when it reports third-quarter 2024 earnings on Nov. 12. The Zacks Consensus Estimate for revenues is pegged at $879.9 million, implying a 1.9% increase from the prior-year quarter’s reported figure. The consensus mark for earnings has remained unchanged in the past 30 days at 74 cents per share, indicating an increase of 29.8% from the figure reported in the year-ago quarter. THS has a trailing four-quarter earnings surprise of 25.1%, on average.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Things to Consider Ahead of THS’ Upcoming Results

TreeHouse Foods' private label products have consistently gained market share over the past two decades, and with grocery retailers making strategic investments in private brands, the company stands to benefit significantly. The elevated price gaps between national and private brands support continued growth in the private label sector. 

The company has been benefiting from successful execution in categories such as cookies, refrigerated dough, pretzels and pickles, along with strategic investments and an expanding net sales pipeline. This strong market positioning is expected to have driven volumes and profits in the quarter under review. The company expects volume contributions from recent acquisitions in the coffee and pretzel sectors undertaken in the first half of the year.

TreeHouse Foods, Inc. Price, Consensus and EPS Surprise

TreeHouse Foods, Inc. Price, Consensus and EPS Surprise

TreeHouse Foods, Inc. price-consensus-eps-surprise-chart | TreeHouse Foods, Inc. Quote

However, THS has been battling supply-chain headwinds for a while now. In the second quarter of 2024, operations and supply-chain-related challenges served as a headwind of $3 million due to increased labor costs and the broth facility restoration effect. High operating expenses and the inflated cost of inputs like cocoa are also a concern.

Nonetheless, the company has been committed to implementing the TreeHouse Management Operating System and other supply-chain initiatives aimed at enhancing execution, margin performance and enriching ties with customers.  TreeHouse Foods expects gross cost savings of nearly $50 million in the latter half of the year and anticipates margin expansion in the second half of 2024. This bodes well for the quarter to be reported.

Earnings Whispers for THS

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 carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. 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 some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time.

CAVA Group, Inc. (CAVA - Free Report) currently has an Earnings ESP of +3.38% and a Zacks Rank of 2 at present. The company is likely to register top and bottom-line growth when it reports third-quarter 2024 results. The Zacks Consensus Estimate for CAVA’s quarterly revenues is pegged at $235.1 million, which indicates growth of 33.9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for CAVA Group’s earnings is pegged at 11 cents per share, indicating 83.3% growth from the year-ago quarter. CAVA has a trailing four-quarter earnings surprise of 257.7%, on average.

Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank of 3. OLLI's top line is anticipated to increase year over year when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $519 million, which implies 8.1% growth from the year-ago quarter’s reported figure. 

The company is expected to register an increase in the bottom line. The consensus estimate for Ollie's Bargain’s third-quarter earnings is pegged at 57 cents per share, indicating 11.8% growth from the year-ago quarter. OLLI has a trailing four-quarter earnings surprise of 7.9%, on average.

Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank of 3. The company is likely to register a top-line decline when it reports fiscal fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for JACK’s quarterly revenues is pegged at $357.9 million, which indicates a dip of 3.9% from the figure reported in the prior-year quarter.

The consensus estimate for Jack in the Box’s quarterly earnings has declined by 2 cents over the past 30 days to $1.12 per share. The figure calls for growth of 2.8% from the year-ago quarter’s number. JACK delivered an average earnings surprise of 1.7% in the trailing four quarters.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in