THS Earnings Prediction
The chart below shows how THS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, THS sees a +3.54% change in stock price 10 days leading up to the earnings, and a +0.18% change 10 days following the report. On the earnings day itself, the stock moves by -3.94%. This data can give you a slight idea of what to expect for the next quarter's release.
THS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
905.70M
-0.56%
7.94%
Gross Margin
18.02%
2.27%
2.80%
Operating Margin
9.33%
28.87%
15.47%
Net Margin
6.48%
825.71%
-1680.49%
EPS
1.12
700.00%
-1700.00%
No Data Available
THS Earnings Analysis
TreeHouse Foods Inc Corporation (THS.N) Earnings Conference Call
Positive
Stable Financial Performance: TreeHouse Foods reported fourth quarter adjusted net sales of $911.4 million and adjusted EBITDA of $118.3 million, both in line with expectations, indicating stable financial performance.
Volume and Mix Growth: The company achieved almost 4% growth in volume and mix during the fourth quarter despite supply chain disruptions, showcasing effective execution and resilience.
Acquisition of Harris Tea: TreeHouse Foods completed the acquisition of Harris Tea, enhancing its competitive positioning in the private label tea category and adding unique blending and sourcing capabilities.
Supply Chain Savings Projection: The company anticipates $250 million in gross supply chain savings through 2027, indicating a strong focus on cost optimization and improved profitability.
Private Brand Market Growth: Private brands have been consistently gaining market share, and TreeHouse Foods is well-positioned to benefit from this trend, particularly in the growing private label grocery and snacking sectors.
Margin Management Focus: The company is focused on margin management and operational efficiency, which are expected to drive improved profitability and cash flow in 2025, despite a challenging macro environment.
Shareholder Value Enhancement: TreeHouse Foods has a disciplined capital allocation strategy, having returned approximately $150 million to shareholders through share repurchases in 2024, reflecting a commitment to enhancing shareholder value.
Negative
Private Brand Sales Decline: Private brand unit sales experienced a sharp deceleration during Q4, attributed to continued macro pressure affecting the broader food and beverage market.
Sales Growth Challenges: Despite a 4% growth in adjusted net sales for Q4, the company faced significant challenges, including a 2.8% drag from the frozen griddle facility restoration.
Griddle Product Recall Impact: The company anticipates no significant financial contribution from the griddle products in Q1 2025 due to the recall and facility closure.
Flat Adjusted Net Sales: Adjusted net sales for 2025 are expected to be flat, with a projected decline of approximately 1% in volume and mix, influenced by the exit from the ready-to-drink business and the impact of the frozen griddle recall.
Adjusted EBITDA Projections: The company expects adjusted EBITDA for 2025 to be in the range of $345 million to $375 million, indicating potential profitability challenges ahead.
Sales Decline Projection: The first quarter of 2025 is projected to see adjusted net sales decline by approximately 3.5% year-over-year, with volume and mix expected to decline by about 3%.
Food Industry Challenges: The company acknowledged that the food industry faced a difficult year in 2024, with high inflation and consumer pressure impacting performance.
Strategic Reset Needed: The management team expressed dissatisfaction with 2024 results, indicating a need for a reset in strategy and operations to improve future performance.
THS FAQs
How does THS typically perform around its earnings report dates?
Is TreeHouse Foods Inc (THS) Q4 2024 Earnings Call Summary positive or negative?
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THS Earning Call Sentiment
Earnings call transcript: TreeHouse Foods Q4 2024 results miss estimates
THS.N
0.97%Positive
The earnings call presents a mixed picture, with some positive developments like share repurchase and cost-saving initiatives. However, the negative aspects, such as declining sales guidance, supply chain disruptions, regulatory scrutiny, and competitive pressures, outweigh the positives. The Q&A section reveals management's cautious outlook and avoidance of clear answers on key issues. Given the company's mid-cap status, the combination of these factors suggests a negative stock price reaction in the range of -2% to -8% over the next two weeks.
