TreeHouse Foods, Inc. (THS), a food and beverage company, on Monday reported earnings for the third quarter compared with a loss for the same period last year, particularly in the absence of a one-time loss on sale of business last year to the tune of $73.8 million as a result of the divestiture of a significant portion of the Meal Preparation business.
The company also issued its fourth-quarter outlook and updated its adjusted EBITDA and adjusted net revenue guidance for fiscal 2023.
The company reported a quarterly net income of $7.1 million or $0.13 per share compared with a loss of $90.5 million or $1.61 per share for the same period last year.
Excluding items, earnings were $0.50 per share compared to $0.18 per share of the previous year.
On average, eight analysts polled by Thomson Reuters expected earnings of $0.50 per share for the year. Analysts’ estimates typically exclude special items.
Net revenues increased 3.6 percent to $863.3 million from $832.9 million in the prior year, driven by the acquisition of the Coffee Roasting Capability, favorable pricing to recover commodity inflation, and an increase in retail volume.
The Street estimate was for revenue of $954.22 million.
Looking ahead to the next quarter, the company expects Adjusted EBITDA to be between $103 million and $113 million down around 9 percent at the midpoint and adjusted net revenues to be between $910 million and $940 million down around 3 percent at the midpoint.
The Street estimate for revenue is $1.04 billion.
Looking forward to the full year, the company continues to expect adjusted EBITDA in the range of $360 million and $370 million.
Net revenues are now expected to be between $3.44 billion and $3.47 billion lower than the previous range of $3.71 billion and $3.78 billion. The analysts’ view is $3.74 billion.
On Friday, TreeHouse Foods shares closed at $42.50 up 0.73% on the New York Stock Exchange.
Source: Read Full Article