The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Treehouse Foods missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Treehouse Foods logged revenue of $538.1 million. The 12 analysts polled by S&P Capital IQ expected to see revenue of $564.2 million on the same basis. GAAP reported sales were 1.9% higher than the prior-year quarter's $528.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.70. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.78 per share. GAAP EPS of $0.58 for Q3 were 29% lower than the prior-year quarter's $0.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.0%, 280 basis points worse than the prior-year quarter. Operating margin was 7.7%, 260 basis points worse than the prior-year quarter. Net margin was 4.0%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $578.1 million. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $2.80.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 93 members out of 105 rating the stock outperform, and 12 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Treehouse Foods a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Treehouse Foods is outperform, with an average price target of $56.50.
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