TreeHouse Foods Q3 Profit Tops Estimates; To Acquire Ebro's Regional Pasta Brands

(RTTNews) - TreeHouse Foods, Inc. (THS) reported third quarter adjusted earnings per share from continuing operations of $0.71 compared to $0.55, prior year, an increase of 29%. On average, 11 analysts polled by Thomson Reuters expected the company to report profit per share of $0.61, for the quarter. Analysts' estimates typically exclude special items.

Third quarter net sales were $1.05 billion compared to $1.06 billion, last year, down 1.1%. Organic net sales increased 0.7% in the third quarter of 2020. Analysts expected revenue of $1.06 billion, for the quarter.

TreeHouse tightened its 2020 guidance for adjusted earnings per share from continuing operations to $2.65 - $2.75. The company also tightened revenue guidance of $4.20 to $4.40 billion.

For the fourth quarter, the company projects: adjusted earnings per share from continuing operations of $1.00 to $1.10; and net sales of $1.11 to $1.17 billion.

Seprately, TreeHouse Foods announced it has signed a definitive agreement to acquire the majority of the U.S. branded pasta portfolio of Riviana Foods, a subsidiary of Ebro, for $242.5 million in cash. The company expects the acquisition to be accretive by $0.20 to $0.30 per share in the first full year after closing.

Shares of TreeHouse Foods were up more than 3% in pre-market trade on Thursday.