Treehouse Foods Inc (THS)

TreeHouse Foods Stock (THS) dropped by 15.49% due to its fourth-quarter earnings report, where the food wholesaler fell short of revenue expectations and provided cautious guidance for the first quarter. In the fourth quarter, TreeHouse Foods reported a 4.8% decrease in revenue to $910.8 million, failing to meet the estimated $925.4 million. Factors contributing to the sales decline included a supply chain disruption at one of its broth facilities, lower volume, and a shift in sales mix. Despite aggressive pricing earlier in the year, prices remained flat in the fourth quarter. Additionally, the gross margin fell by 160 basis points to 16.7%, mainly due to the supply chain issue impacting profitability.

Treehouse Foods Stock (THS) dropped by 10.31% from $42.50 to $38.12 in the trading on Monday November 6, 2023. The reasons why THS stock down today include

• Q3 FY23 results: Sales from continuing operatiomns grew 3.6% Y/Y to $863.3M, missing the consensus of $947.3M. Adjusted net sales stood at $906.6M, below the guidance range of $950 - $970M, adversely impacted by a voluntary product recall and a discrete supply chain disruption late in the quarter. Adjusted EPS of $0.50 missed the consensus estimate of $0.53.
• FY23 outlook: Adjusted net sales growth is now expected to be 4.5% Y/Y at midpoint, representing a range of $3.435 - $3.465B versus a $3.74B estimate.
• Q4 Outlook: THS expects adjusted revenue of $910 - $940M, representing approximately a 3% Y/Y decline at the midpoint, vs. consensus of $1.04B.