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TreeHouse Foods Queued for Q4 Earnings Release: Is a Beat Likely?

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TreeHouse Foods, Inc. (THS - Free Report) is likely to witness a top-line decline when it reports fourth-quarter 2024 earnings on Feb. 14. The Zacks Consensus Estimate for revenues is pegged at $904.85 million, indicating a 0.7% decrease from the prior-year quarter’s reported figure.

The consensus mark for earnings has remained unchanged in the past 30 days at 97 cents per share, which suggests a 26% jump from the figure reported in the year-ago quarter. THS has a trailing four-quarter earnings surprise of 20.4%, on average.

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

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

THS: Key Factors to Watch

TreeHouse Foods has been operating in a dynamic environment characterized by challenging consumer trends, slower category growth and operational disruptions. Although private brand unit sales were positive during the third quarter of 2024, there was a notable deceleration as the quarter progressed. This reflects sustained consumer pressure and broad market challenges. The softness persisted into October, with expectations for these trends to continue in the near term, per the last earnings call. This raises concerns about the fourth quarter.  

Thanks to softer consumer demand and the recent voluntary recall of frozen griddle products, TreeHouse Foods lowered its 2024 adjusted net sales and adjusted EBITDA guidance on its third-quarter earnings call. For the fourth quarter, adjusted net sales are projected to be between $900 million and $930 million, indicating a decline of 2% to 1% year over year. Organic volume and mix are anticipated to have increased by low-single digits, while pricing is likely to have been a small drag. Adjusted EBITDA from continuing operations for the fourth quarter is estimated in the range of $116-$126 million.

The company has been committed to implementing the TreeHouse management operating system or TMOS and other supply-chain initiatives aimed at enhancing execution, margin performance and enriching ties with customers. Focusing on refining the portfolio through prudent acquisitions and divestitures has also been working well for the company.

Earnings Whispers for THS Stock

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 #2 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 right combination of elements to beat on earnings this reporting cycle.

US Foods Holding Corp. (USFD - Free Report) currently has an Earnings ESP of +2.68% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for US Foods Holding’s quarterly revenues is pegged at $9.47 billion, which suggests 6% growth from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for US Foods Holding’s quarterly earnings per share is pegged at 80 cents, indicating a 25% increase from the year-ago period. USFD delivered an earnings surprise of 3.7% in the last reported quarter.

The Coca-Cola Company (KO - Free Report) currently has an Earnings ESP of +0.30% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.69 billion, which indicates a decrease of 1.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Coca-Cola’s fourth-quarter 2024 EPS is pegged at 51 cents, which implies a 4.1% increase year over year. KO has a trailing four-quarter earnings surprise of 3.9%, on average. 

Walmart (WMT - Free Report) currently has an Earnings ESP of +0.15% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Walmart’s quarterly revenues is pegged at $179.4 billion, which suggests an increase of 3.5% from the prior-year quarter.

The Zacks Consensus Estimate for Walmart’s quarterly earnings per share is pegged at 64 cents, indicating 6.7% growth from the year-ago period. WMT has a trailing four-quarter earnings surprise of 9.3%, on average.

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