TreeHouse Foods Reduces 2021 Guidance

(RTTNews) - TreeHouse Foods, Inc. (THS) said its second quarter adjusted earnings per share declined year-on-year as lower selling, general and administrative expenses lessened the impact of lower than anticipated sales. The company reduced its 2021 guidance primarily driven by the second quarter revenue shortfall, continued uncertainty and its impact on consumer purchasing behavior, further escalation in commodity, freight, and packaging costs and the timing lag related to the impact of pricing actions.

For 2021, TreeHouse now expects adjusted earnings per share from continuing operations of $2.00 to $2.50, and reported net sales between $4.20 to $4.45 billion. Analysts polled by Thomson Reuters expect the company to report profit per share of $2.84 on revenue of $4.48 billion. Analysts' estimates typically exclude special items.

On a continuing operations basis, for the third quarter, the company expects: adjusted earnings per share from continuing operations of $0.45 - $0.60, and reported net sales between $1.05 and $1.16 billion. Analysts expect the company to report profit per share of $0.90 on revenue of $1.12 billion.

Second-quarter adjusted earnings per share from continuing operations was $0.26 compared to $0.58, last year. On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $0.26, for the quarter.

Loss per share from continuing operations was $0.09 compared to a loss of $0.05, last year. Net loss from continuing operations was $5.2 million, compared to a loss of $2.6 million.

Revenue was $1.00 billion compared to COVID-impacted $1.04 billion. Analysts expected revenue of $1.05 billion, for the quarter. Organic net sales decreased 7.3%, for the quarter.

Shares of TreeHouse Foods were down 1.6% in pre-market trade on Thursday.