TreeHouse Foods Trims Earnings View Below Consensus On Volume Drop
Friday, January 20, 2022 9:20 AM

TreeHouse Foods Inc. (NYSE: THS) cut its full year earnings view, below Wall Street projections, citing a 8 percent fall in December volumes.

The Westchester, Illinois-based company, which services mainly the retail grocery and foodservice channels, sees 2011 adjusted earnings between $2.70 and $2.73 per share from $2.90 to $3.00 per share projected earlier. Analysts expect the company to earn $2.94 a share for 2011.

TreeHouse Foods attributed the downward revision to decrease in consumer food purchases, sales shift towards alternate channel retailers and negative impact of warm weather in the Midwest and Northeast on seasonal sales.

It sees fourth quarter earnings per share in the range of 84 cents to 87 cents, while analysts expect $1.07.

"The combination of consumer purchase behavior, retail channel shifts and abnormal seasonality adversely affected our results in the quarter," said chief executive Sam Reed.

TreeHouse Foods preliminary total fourth quarter revenue rose 5 percent to about $535 million. It expects gross margin to contract to 22 percent from 24.8 percent in the year-ago period.

THS ended Thursday's regular trading session at $62.86. The stock has been trading in the 52-week range between $46.73 and $67.25.