Treehouse Foods (NYSE: THS) reported Q2 EPS of $0.58, $0.10 better than the analyst estimate of $0.48. Revenue for the quarter came in at $1.04 billion versus the consensus estimate of $1.07 billion.

"Our priority continues to be the health, safety and welfare of our employees, and we owe them our thanks as they've continued to demonstrate resilience and dedication, working tirelessly to fulfill increased demand and service our customers," said Steve Oakland, Chief Executive Officer and President. "I'm pleased with our strong performance in the second quarter, as we delivered bottom line results of $0.58, which was above our expectations. Our business transformation and strategic reorganization to two divisions enabled us to increase production to meet higher demand and capture operational efficiencies."

Bill Kelley, EVP and Chief Financial Officer, said: "Our operational and commercial teams continue to work well together to service our retail customers and meet the higher demand for food at home, which drove organic net sales growth of 3.7% in the second quarter. Our conscious decision to keep our employees safe and healthy by limiting production at plants located in regions most heavily impacted by COVID-19 resulted in revenue for the quarter just below our guidance range. Solid productivity gains throughout our network of manufacturing and distribution facilities enabled us to deliver second quarter adjusted gross profit1 of 20.1%, 120 basis points higher than last year. I commend our team on an outstanding performance in a difficult time."

GUIDANCE:

Treehouse Foods sees Q3 2020 EPS of $0.55-$0.65, versus the consensus of $0.63. Treehouse Foods sees Q3 2020 revenue of $1.04-1.08 billion, versus the consensus of $1.06 billion.

Treehouse Foods sees FY2020 EPS of $2.55-$2.75, versus the consensus of $2.61. Treehouse Foods sees FY2020 revenue of $4.1-4.4 billion, versus the consensus of $4.36 billion.

TreeHouse raised its full year 2020 guidance for adjusted earnings from continuing operations to $2.55 to $2.75 per diluted share. The Company now expects 2020 revenue to be at the upper end of its original guidance of $4.10 to $4.40 billion. Free cash flow is also expected to be at the upper end of the guidance range of $250 to $300 million.

"We are encouraged by both the strength of our operations during this period of elevated demand and the commitment of our employees to supporting our healthy workplace protocols and processes," Mr. Oakland continued. "The work we performed related to our restructuring and reorganization activities has enabled us to flourish during this uncertain time. We remain confident in both our near-term and the longer-term opportunity for private label. Our outlook for the balance of the year assumes revenue will remain strong and takes into account higher costs to implement and maintain heightened COVID-19 safety measures. While macro uncertainty remains in the second half of the year, we feel comfortable in raising our full-year adjusted EPS guidance range."

In regard to the third quarter outlook, TreeHouse anticipates the following:

• Adjusted earnings per diluted share from continuing operations of $0.55 to $0.65, up approximately 9% year-over-year at the midpoint
• Net sales between $1.04 to $1.08 billion, approximately flat year-over-year at the midpoint on a reported basis, and up approximately 2% on an organic basis
• Adjusted EBITDA from continuing operations of $112 to $127 million, up approximately 6% year-over-year at the midpoint

For earnings history and earnings-related data on Treehouse Foods (THS) click here.