TreeHouse Foods' Q3 Earnings Coming Up: Things to Note About THS

Core Insights - TreeHouse Foods, Inc. (THS) is expected to report revenue of $879.9 million for Q3 2024, reflecting a 1.9% increase year-over-year, with earnings per share estimated at 74 cents, indicating a 29.8% growth from the previous year [1] Group 1: Company Performance - THS has consistently gained market share in private label products, benefiting from grocery retailers' investments in private brands, which supports growth in the private label sector [3] - The company has successfully executed strategies in categories such as cookies, refrigerated dough, pretzels, and pickles, which are expected to drive volumes and profits in the upcoming quarter [4] - Recent acquisitions in the coffee and pretzel sectors are anticipated to contribute positively to volume growth [4] Group 2: Challenges and Initiatives - THS has faced supply chain challenges, with a $3 million headwind in Q2 2024 due to increased labor costs and restoration effects from a broth facility [5] - High operating expenses and rising input costs, particularly for cocoa, are ongoing concerns for the company [5] - The implementation of the TreeHouse Management Operating System and other supply chain initiatives aims to enhance execution and margin performance, with expected gross cost savings of nearly $50 million in the latter half of the year [6] Group 3: Earnings Outlook - The current model does not predict an earnings beat for THS, as it holds a Zacks Rank of 3 (Hold) and an Earnings ESP of 0.00% [7]