The 10-second takeaway
For the quarter ended March 31 (Q1), Treehouse Foods missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded.
Gross margins shrank, operating margins shrank, net margins increased.
Treehouse Foods booked revenue of $540.1 million. The 13 analysts polled by S&P Capital IQ hoped for a top line of $555.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.74. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.70 per share. Non-GAAP EPS of $0.74 for Q1 were 17% higher than the prior-year quarter's $0.63 per share. GAAP EPS of $0.62 for Q1 were 3.3% higher than the prior-year quarter's $0.60 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 21.1%, 80 basis points worse than the prior-year quarter. Operating margin was 8.2%, 50 basis points worse than the prior-year quarter. Net margin was 4.3%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $546.7 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $2.26 billion. The average EPS estimate is $3.08.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 96 members out of 110 rating the stock outperform, and 14 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Treehouse Foods a green thumbs-up, and four 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 $60.00.
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