Treehouse Foods (THS) Tops Q2 EPS by 12c, Revenues Beat; Offers FY18 EPS Mid-Point Guidance Above Consensus
Treehouse Foods (NYSE: THS) reported Q2 EPS of $0.37, $0.12 better than the analyst estimate of $0.25. Revenue for the quarter came in at $1.46 billion versus the consensus estimate of $1.42 billion.
"Private label continues to be a strategic imperative for our retail partners," continued Mr. Oakland. "Every day, we strive to provide retailers with high quality food and beverages, coupled with exceptional service. However, we have yet to really leverage our leadership position in private label and unleash the power of scale. Our teams are energized, they\'re on board, and we will continue our focus on operational excellence."
"While our work around process improvement and better discipline in order to drive costs out of the system is ongoing, one of my priorities has been thinking through how we can position our portfolio to best serve the changing retail environment. We have reinvigorated a strategy process across the company, and we are in the process of refining our priorities. I look forward to communicating more detail on our strategy before the end of the year," concluded Mr. Oakland.
The Company fine-tuned its 2018 guidance for adjusted earnings per fully diluted share to $2.05 to $2.35 and updated its revenue expectation to a range of $5.8 to $6.0 billion, as volumes in the second half of the year are expected to be modestly lower than originally anticipated. Regarding the third quarter of 2018, the Company expects adjusted earnings in the range of $0.50 to $0.60 per fully diluted share. The Company noted that although production has resumed at its Pecatonica non-dairy creamer plant the ramp up period is expected to extend into the fourth quarter. In addition, while TreeHouse has initiated pricing discussions with customers related to the Canadian import tariffs, the Company does not expect pricing recovery to occur until the fourth quarter of 2018.
GUIDANCE:
Treehouse Foods sees FY2018 EPS of $2.05-$2.35, versus the consensus of $2.09. Treehouse Foods sees FY2018 revenue of $5.8-6 billion, versus the consensus of $6.06 billion.
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