Core Viewpoint - TreeHouse Foods, Inc. is experiencing significant challenges due to weak consumer demand and operational disruptions, leading to a notable decline in stock performance and revised financial guidance [1][11]. Financial Performance - Over the past three months, TreeHouse Foods' stock has decreased by 18.5%, underperforming the industry decline of 10.2% and the Zacks Consumer Staples sector's drop of 7.8% [1]. - The company has lowered its 2024 adjusted net sales guidance to a range of $3.37-$3.4 billion, reflecting a decline of 1% to 2% from 2023 levels, revised from a previous forecast of $3.43-$3.5 billion [3][4]. - Adjusted EBITDA guidance for 2024 has also been revised downward to $335-$345 million [10]. Sales and Market Trends - In the third quarter of fiscal 2024, TreeHouse Foods reported net sales of $839.1 million, a decrease of 2.8% year over year, attributed to a voluntary recall of frozen griddle products and unfavorable volume/mix performance [7]. - Organic sales fell by 2.7%, driven by slowing consumer consumption trends across key categories [7]. - Despite positive unit sales for private brands in the third quarter, there was a notable deceleration as the quarter progressed, indicating sustained consumer pressure and market challenges [8]. Outlook - The outlook for TreeHouse Foods remains bleak, with ongoing challenges expected to hinder growth in the near term [11]. - The company holds a Zacks Rank of 5 (Strong Sell), suggesting that investors should approach with caution [11].

Core Viewpoint - TreeHouse Foods reported mixed Q3 fiscal 2024 results, with adjusted earnings meeting expectations but net sales declining, leading to a downward revision of future guidance due to weak consumer demand and a product recall [2][4][8]. Financial Performance - Adjusted earnings were 74 cents per share, up from 57 cents year-over-year, aligning with the Zacks Consensus Estimate [3]. - Net sales totaled $839.1 million, a decrease of 2.8% year-over-year, missing the Zacks Consensus Estimate of $879.9 million [4]. - Organic sales fell by 2.7% year-over-year, with volume/mix contributing to a 0.8% decline [4]. Cost and Margin Analysis - Gross margin contracted to 15.6%, down 0.3 percentage points year-over-year, primarily due to the product recall, which impacted gross profit by 3.2 percentage points [5]. - Adjusted gross margin improved to 18.9%, an increase of 1.6 percentage points year-over-year, attributed to supply chain initiatives [5]. - Total operating expenses decreased to $99.4 million from $103.9 million year-over-year, driven by lower freight costs and reduced growth expenses [6]. Guidance and Outlook - For 2024, adjusted net sales are projected between $3.37 billion and $3.4 billion, indicating a decline of 1% to 2% from 2023 levels, revised from a previous forecast of $3.43 billion to $3.5 billion [8]. - Adjusted EBITDA guidance was lowered to $335 million to $345 million from $360 million to $380 million, reflecting weakening consumption trends [8]. - Q4 adjusted net sales are expected to be between $900 million and $930 million, also indicating a decline of 1% to 2% year-over-year [10]. Financial Health - As of the end of the quarter, TreeHouse Foods had cash and cash equivalents of $102 million, long-term debt of $1,399.9 million, and total shareholders' equity of $1,552.6 million [7]. - Net cash used in operating activities from continuing operations for the first nine months of 2024 was $30.4 million [7]. Industry Comparison - TreeHouse Foods belongs to the Zacks Food - Miscellaneous industry, where competitor Sysco reported revenues of $20.48 billion, a year-over-year increase of 4.4% [15].

Core Viewpoint - TreeHouse Foods, Inc. is acquiring select subsidiaries of Harris Freeman & Co., Inc. for approximately $205 million, aiming to enhance its position in the tea market and leverage unique sourcing and blending capabilities [1][2]. Acquisition Details - The acquisition is expected to close in the first quarter of 2025 and includes Harris Tea's manufacturing facilities in Moorestown, NJ, and Marietta, GA, along with nearly 300 employees [1][3]. - The purchase price reflects an 8.5x trailing twelve-month adjusted EBITDA, which decreases to 6.5x when considering synergies and projected tax benefits [4]. Strategic Focus - This move aligns with TreeHouse Foods' strategy to focus on higher-growth and higher-margin categories, positioning the company to meet consumer demand for private-label tea products [2][7]. - The acquisition is anticipated to enhance profitability and strengthen customer offerings through vertical integration [3]. Financial Considerations - The company plans to fund the acquisition primarily through cash on hand, maintaining its leverage ratio within the target range of 3.0x to 3.5x [4]. - TreeHouse Foods remains committed to its fiscal 2024 guidance, expecting continued improvement in volume growth and profit margins in the fourth quarter [5]. Market Performance - TreeHouse Foods' shares have declined by 15% over the past three months, underperforming the industry's 5.9% drop, attributed to weak consumer trends and operational disruptions [6]. - Despite positive private brand unit sales in the fiscal third quarter, concerns about sustaining growth amid market challenges persist [6].

Core Viewpoint - TreeHouse Foods, Inc. (THS) is experiencing significant challenges, reflected in a 12.3% decline in stock price over the past three months, underperforming both the broader industry and the S&P 500 [1][3]. Group 1: Performance Metrics - THS reported third-quarter 2024 net sales of $839.1 million, a year-over-year decline of 2.8%, missing the Zacks Consensus Estimate [3]. - Organic sales decreased by 2.7%, with volume/mix contributing to a decline of 0.8%, and pricing and product recall returns leading to further declines of 0.5% and 1.4%, respectively [3][5]. - The company has revised its 2024 adjusted net sales guidance to $3.37-$3.4 billion, indicating a decline of 1% to 2% from 2023 levels, down from a previous forecast of $3.43-$3.5 billion [5][6]. Group 2: Market Trends and Challenges - Weak consumer consumption trends and operational disruptions are negatively impacting THS, with a notable deceleration in private brand unit sales observed [4][8]. - The market for private brands is shrinking, raising concerns about THS's ability to sustain revenue growth [4]. - Analysts have lowered earnings estimates for THS, with fourth-quarter and 2024 projections reduced by 27.6% and 12.2%, respectively, reflecting a negative sentiment [7][8]. Group 3: Future Outlook - The company has also revised its 2024 adjusted EBITDA guidance downward to $335-$345 million, compared to the earlier projection of $360-$380 million, indicating weakening consumption trends [6][8]. - THS is navigating a difficult environment with expected declines in both net sales and EBITDA for 2024, prompting caution among investors [8].

Core Insights - TreeHouse Foods, Inc. (THS) reported mixed results for Q3 fiscal 2024, with adjusted earnings of 74 cents per share matching the Zacks Consensus Estimate, while net sales of $839.1 million declined 2.8% year over year, missing expectations [1][3][4] Financial Performance - Adjusted net sales decreased to $854.4 million, down 1.4% year over year, primarily due to a voluntary recall of frozen griddle products and unfavorable volume/mix performance [4][5] - Organic sales fell by 2.7% year over year, with volume/mix contributing to a 0.8% decline, pricing adjustments leading to a 0.5% drop, and product recall accounting for a 1.4% decrease [5] - Gross margin contracted to 15.6%, down 0.3 percentage points from the previous year, impacted by the recall, but adjusted gross margin improved to 18.9%, up 1.6 percentage points due to supply chain initiatives [6] Cost Management - Total operating expenses decreased to $99.4 million from $103.9 million year over year, driven by lower freight costs and reduced growth expenses [7] - Adjusted EBITDA from continuing operations rose to $102.5 million, up from $89.9 million in Q3 2023, attributed to supply chain savings [7] Financial Health - As of the end of the quarter, TreeHouse Foods had cash and cash equivalents of $102 million, long-term debt of $1,399.9 million, and total shareholders' equity of $1,552.6 million [8] 2024 Outlook - For 2024, adjusted net sales are expected to be between $3.37 billion and $3.4 billion, indicating a decline of 1% to 2% from 2023 levels, revised down from previous guidance [9] - Adjusted EBITDA guidance was also lowered to a range of $335 million to $345 million, reflecting weakening consumption trends and the impact of the product recall [10] - Management anticipates capital expenditures of nearly $145 million and free cash flow of at least $120 million for 2024 [11] Q4 Projections - Adjusted net sales for Q4 are projected to be between $900 million and $930 million, indicating a decline of 1% to 2% year over year, with organic volume expected to increase by low-single digits [12]

Core Viewpoint - TreeHouse Foods, Inc. (NYSE: THS) is undergoing a strategic shift by selling a majority stake in its meal preparation business to simplify operations and enhance focus on core areas [1] Group 1: Company Actions - The sale of the majority stake in the meal preparation business is aimed at streamlining operations and improving overall efficiency [1] - This strategic move reflects the company's intent to concentrate on its primary business segments and potentially unlock shareholder value [1] Group 2: Investment Opportunities - The investing group "Value In Corporate Events" provides insights into major corporate events such as IPOs, mergers & acquisitions, and earnings reports, highlighting actionable investment ideas [1] - The service covers approximately 10 major events monthly, focusing on identifying the best investment opportunities in the market [1]

Core Viewpoint - TreeHouse Foods, Inc. has announced a $400 million share repurchase authorization, reflecting confidence in its balance sheet and future cash generation capabilities [1][2]. Group 1: Share Repurchase Details - The Board of Directors has approved a renewal of the share repurchase authorization, maintaining an annual cap of $150 million [1]. - The company will repurchase shares opportunistically, with the authorization being open-ended and effective immediately [1][3]. - Shares will be repurchased in the open market, through private purchases, or other means, and will be held as treasury stock [3]. Group 2: Company Overview - TreeHouse Foods, Inc. is a leading manufacturer of private brands in the snacking and beverage sector in North America [4]. - The company focuses on customer engagement and aims to deliver excellent service while driving mutually profitable growth [4].

Group 1 - November 12th was a negative day for shareholders of TreeHouse Foods, Inc. (NYSE: THS) as the company's shares experienced a decline [1] - The trading session was ongoing at the time of reporting, indicating that the situation could evolve further [1] Group 2 - Crude Value Insights provides an investment service focused on the oil and natural gas sector, emphasizing cash flow and companies that generate it [2] - Subscribers have access to a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live chat discussions about the sector [2] - A two-week free trial is available for new subscribers, promoting engagement in the oil and gas market [2]

TreeHouse Foods (THS) came out with quarterly earnings of $0.74 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this food maker would post earnings of $0.13 per share when it actually produced earnings of $0.29, delivering a surprise of 123.08%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.TreeHouse, which belongs to ...

Core Insights - TreeHouse Foods reported mixed financial results for Q3 2024, with net sales of $839.1 million, a decrease of 2.8% year-over-year, primarily due to a voluntary product recall and unfavorable volume/mix performance [1][2] - The company updated its 2024 outlook, expecting adjusted net sales between $3.37 billion and $3.40 billion, reflecting a decline of approximately 2% to 1% year-over-year [3][4] - Adjusted EBITDA for Q3 2024 was $102.5 million, an increase from $89.9 million in Q3 2023, attributed to supply chain savings initiatives [2][4] Financial Performance - Net sales for Q3 2024 were $839.1 million, down from $863.3 million in Q3 2023, with a decrease of $24.2 million or 2.8% [2] - Gross profit margin decreased to 15.6% in Q3 2024 from 15.9% in Q3 2023, impacted by the product recall [2] - Adjusted gross profit margin improved to 18.9% in Q3 2024 from 17.3% in Q3 2023, driven by supply chain initiatives [2] Operating Expenses and Other Financial Metrics - Total operating expenses decreased to $99.4 million in Q3 2024 from $103.9 million in Q3 2023, due to lower freight costs and reduced employee incentive compensation [2] - Total other expenses increased to $36.1 million in Q3 2024 from $20.1 million in Q3 2023, primarily due to unfavorable changes in non-cash mark-to-market impacts from hedging activities [2] - The effective tax rate for Q3 2024 was 20.9%, down from 27.4% in Q3 2023, influenced by changes in executive compensation and tax credits [2] Cash Flow and Capital Expenditures - Net cash used in operating activities from continuing operations was $30.4 million in the first nine months of 2024, compared to net cash provided of $11.0 million in the same period of 2023 [2] - The company expects capital expenditures of approximately $145 million and free cash flow of at least $120 million for 2024 [5][6] Outlook - The company anticipates fourth quarter adjusted net sales in the range of $900 million to $930 million, representing approximately -1% to 2% growth year-over-year [5] - Adjusted EBITDA for Q4 2024 is expected to be between $116 million and $126 million, reflecting ongoing challenges in consumption trends [6]