The 10-second takeaway
For the quarter ended March 31 (Q1), Treehouse Foods met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue improved and GAAP earnings per share grew.
Gross margins dropped, operating margins shrank, net margins improved.
Treehouse Foods booked revenue of $523.8 million. The 12 analysts polled by S&P Capital IQ predicted net sales of $523.8 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $493.5 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 $0.63. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.60 for Q1 were 11% higher than the prior-year quarter's $0.54 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%, 260 basis points worse than the prior-year quarter. Operating margin was 8.7%, 90 basis points worse than the prior-year quarter. Net margin was 4.2%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $533.2 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $2.22 billion. The average EPS estimate is $3.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 92 members out of 102 rating the stock outperform, and 10 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 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 $60.50.
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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. He is the 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 don't 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.