TreeHouse Foods: TreeHouse Foods to Report Q1 Earnings: What Should Investors Expect?

TreeHouse Foods to Report Q1 Earnings: What Should Investors Expect? In This Article: TreeHouse Foods, Inc. THS is likely to witness top and bottom-line declines when it reports first-quarter 2025 earnings on May 6, before market open. The Zacks Consensus Estimate for revenues is pegged at $789.6 million, indicating a 3.8% decrease from the prior-year quarter's reported figure. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.) The consensus mark for quarterly adjusted loss has been narrowed by 3 cents in the past seven days to 21 cents per share, which suggests a significant decline from the figure reported in the year-ago quarter. THS has a trailing four-quarter earnings surprise of 17.8%, on average. In the last reported quarter, the company lagged the Zacks Consensus Estimate by a margin of 2.1%. TreeHouse Foods, Inc. Price, Consensus and EPS Surprise TreeHouse Foods, Inc. price-consensus-eps-surprise-chart | TreeHouse Foods, Inc. Quote Key Factors Influencing THS' Q1 Performance TreeHouse Foods' first-quarter performance is likely to have been negatively impacted due to ongoing operational disruptions and macroeconomic headwinds. On its last reported quarter's earnings call, management highlighted that its frozen griddle product recall at the Brantford facility remains a key drag, as the facility resumed shipments but is likely to have contributed little to revenues in the quarter under review. In addition, private label consumption trends are likely to have stayed weak amid broader consumer spending pressure. TreeHouse Foods' strategic margin management actions, which included exiting low-margin and unprofitable contracts, are anticipated to have reduced volume intentionally, compounding the top line's negative impacts. On the earnings side, lower volumes are hurting operating leverage, making it harder for the company to absorb fixed costs, thereby compressing the gross margin. Added to this are one-time recall-related costs, including plant sanitation and restart costs, which are putting pressure on profitability. For the first quarter, TreeHouse Foods has provided guidance, expecting adjusted net sales of at least $792 million. The company expects first-quarter adjusted EBITDA of at least $52 million, signaling gains from cost-saving and operational initiatives. The company has been dedicated to implementing the TreeHouse Management Operating System, along with other supply-chain initiatives designed to improve execution, enhance margin performance and strengthen relationships with customers. The continuation of these trends is likely to have offered some respite in the to-be-reported quarter. What the Zacks Model Predicts for TreeHouse Foods Our proven model predicts an earnings beat for TreeHouse Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. TreeHouse Foods has a Zacks Rank #3 and an Earnings ESP of +63.42%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Other Stocks With the Favorable Combination Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle. Celsius Holdings, Inc. CELH currently has an Earnings ESP of +12.83% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2025 earnings per share (EPS) is pegged at 19 cents, which implies a 29.6% year-over-year decrease. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Celsius Holdings' quarterly revenues is pegged at $342.5 million, which indicates a decline of 3.7% from the figure reported in the prior-year quarter. CELH has a trailing negative four-quarter earnings surprise of 4%, on average. Post Holdings POST presently has an Earnings ESP of +7.20% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS is pegged at $1.19, which implies a 21.2% year-over-year decrease. The Zacks Consensus Estimate for Post Holdings' quarterly revenues is pegged at $1.98 billion, which indicates a decline of 0.7% from the figure reported in the prior-year quarter. POST has a trailing four-quarter earnings surprise of 22.3%, on average. Nomad Foods Ltd. NOMD has an Earnings ESP of +3.80% and currently flaunts a Zacks Rank of 1. The company is likely to register a top-line decline when it reports first-quarter 2025 numbers. The Zacks Consensus Estimate for Nomad Foods' quarterly revenues is pegged at $842.5 million, which indicates a 1% decline from the prior-year quarter's actual. The consensus estimate for Nomad Foods' first-quarter earnings is pegged at 40 cents per share, suggesting no change from the year-ago quarter's actual. NOMD delivered a trailing four-quarter earnings surprise of 5%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TreeHouse Foods, Inc. (THS) : Free Stock Analysis Report Post Holdings, Inc. (POST) : Free Stock Analysis Report Nomad Foods Limited (NOMD) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research