The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TreeHouse Foods met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins dropped, operating margins expanded, and net margins expanded.
TreeHouse Foods booked revenue of $535.8 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $535.9 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $509.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.85. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.87 per share on the same basis. GAAP EPS of $0.81 for Q4 were 6.6% higher than the prior-year quarter's $0.76 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 21.9%, 300 basis points worse than the prior-year quarter. Operating margin was 10.7%, 30 basis points better than the prior-year quarter. Net margin was 5.6%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $526.0 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $2.22 billion. The average EPS estimate is $3.09.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 96 members out of 107 rating the stock outperform, and 11 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 hold, with an average price target of $62.60.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.