BUZZ-TreeHouse Foods up after quarterly revenue tops estimates, volumes rise

Shares of food processing company TreeHouse Foods THS.N rise as much as 22.6% to over a three-month high of $40.77

Company posts fourth-quarter adjusted net sales of $911.4 million vs estimates of $907.7 million, per data compiled by LSEG

Fourth-quarter volumes rose 3.8% compared to a 0.8% decline in previous quarter on strong performance in categories including pretzels, in-store bakery and cookies

However quarterly adjusted EPS of 95 cents narrowly missed expectations of 97 cents

THS also sees annual adjusted net sales of $3.34 billion to $3.40 billion vs estimates of $3.45 billion, and adjusted EBITDA between $345 million and $375 million vs estimates of $378.2 million

Brokerage William Blair says volume rise in the fourth quarter is a positive trend given the slower food industry unit sales, believes forecasts have upside potential as it offers headroom to drive profitability

One of nine brokerages rate the stock "strong buy" and eight "hold," with a median PT of $35

THS fell 15.3% in 2024