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What: Shares of food manufacturer Treehouse Foods
So what: Management said it expects revenue to grow about 5% to $535 million and adjusted earnings per share to be between $0.84 and $0.87. Analysts had expected revenue to be $567.1 million and earnings to be $1.07 per share.
Now what: The company said warm weather hurts sales of hot cereals and soups that normally sell well in the winter. Also, a higher percentage of sales to lower-margin dollar stores is having an impact on profitability. A miss like this isn't good news, but these seem like temporary problems due to very unusual weather so I think the sell-off may be a bit overdone today.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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