NYSE$THS

TreeHouse Foods Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

TreeHouse Foods reported results, with adjusted EPS exceeding expectations and raised full year guidance.

TreeHouse Foods reported a 1.6% increase in net sales for the second quarter of 2020, driven by increased retail demand due to the COVID-19 pandemic. Adjusted EPS was $0.58, up 45% year-over-year, and the company raised its full year guidance for adjusted EPS to $2.55-$2.75.

  • Second quarter adjusted EPS increased by 45% to $0.58, driven by improved operational throughput.
  • Net sales increased by 1.6% to $1,041.9 million compared to the same period last year.
  • Organic net sales increased by 3.7% due to increased retail demand from the COVID-19 pandemic.
  • Full year 2020 guidance for adjusted EPS was raised to $2.55 - $2.75 per diluted share.

Headline financials

Total Revenue

$1.04B

Previous: $1.25B-16.7%
EPS (adj)

$0.58

Previous: $0.36+61.1%
Capital Expenditures

-$49M

Previous: -$60.2M+18.6%
Free Cash Flow

$74.8M

Previous: -$50.8M+247.2%
Net Income

-$1.5M

Previous: -$172M+99.1%
Operating Income

$25.3M

Previous: -$150M+116.9%
Gross Profit

$191M

Previous: $199M-3.9%
Cash & Equivalents

$294M

Previous: $63.7M+361.4%
Total Assets

$5.24B

Previous: $5.59B-6.3%
Stock-Based Comp

$7M

Previous: $7.1M-1.4%

Revenue & EPS history

TreeHouse · Revenue · Quarterly

$1.04B

Q2 2020-16.7%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

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.

Tailwinds

  • 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
  • Revenue will remain strong
  • Company feels comfortable in raising its full-year adjusted EPS guidance range

Headwinds

  • The Company is not able to reconcile prospective adjusted earnings per diluted share from continuing operations and prospective adjusted EBITDA (Non-GAAP) to the most comparable GAAP financial measure without unreasonable effort due to the inherent uncertainty and difficulty of predicting the occurrence, financial impact, and timing of certain items impacting GAAP results.
  • These items include, but are not limited to, mark-to-market adjustments of derivative contracts, foreign currency exchange on the re-measurement of intercompany notes, or other non-recurring events or transactions that may significantly affect reported GAAP results.
  • Outlook for the balance of the year takes into account higher costs to implement and maintain heightened COVID-19 safety measures.
  • Macro uncertainty remains in the second half of the year
  • There exists uncertainty around the nature, timing and magnitude of changes in future sales and earnings attributable to the spread of COVID-19 in North America.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

-1.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

-1.9%

Avg return

30 days after

43%

29 / 67 earnings

Positive

+23.3%

Q3 2025

Best reaction

-36.5%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+23.3%+25.9%+25.4%
Q2 2025-6.5%-3.5%-10.7%
Q1 2025-5.5%-3.5%-6.6%
Q4 2024-0.6%-8.4%-15.2%
Q3 2024-15.1%-12.9%-8.5%
Q2 2024-5.1%+0.4%+5.1%
Q1 2024-4.7%-5.2%-0.9%
Q4 2023-14.2%-14.1%-14.1%
Q3 2023-9.0%-8.8%-2.8%
Q2 2023-9.9%-8.9%-14.0%
Q1 2023-1.4%-4.1%-10.4%
Q4 2022-1.4%+1.1%-2.1%
Q3 2022-2.5%-2.6%-2.1%
Q2 2022+8.0%+11.4%+3.5%
Q1 2022+22.7%+27.0%+28.1%
Q4 2021+15.4%+14.8%-5.6%
Q3 2021+3.9%
Q2 2021-6.3%
Q1 2021+0.8%
Q4 2020-2.5%
Q3 2020-6.0%
Q2 2020-4.6%
Q1 2020+5.2%
Q4 2019-0.7%
Q3 2019-11.0%
Q2 2019-3.8%
Q1 2019-13.0%
Q4 2018+0.0%
Q3 2018-1.9%
Q2 2018+8.6%
Q1 2018+20.6%
Q4 2017-11.0%
Q3 2017-36.5%
Q2 2017-11.6%
Q1 2017-12.1%
Q4 2016+12.1%
Q3 2016-20.5%
Q2 2016-1.5%
Q1 2016+8.1%
Q4 2015+2.4%
Q3 2015+1.3%
Q2 2015-3.0%
Q1 2015-10.4%
Q4 2014-9.8%
Q3 2014-5.8%
Q2 2014+3.1%
Q1 2014-4.0%
Q4 2013+10.7%
Q3 2013-2.1%
Q2 2013+4.0%
Q1 2013-0.0%
Q4 2012+11.0%
Q3 2012-1.8%
Q2 2012-12.7%
Q1 2012+0.1%
Q4 2008+2.1%
Q4 2011+2.1%
Q3 2011-1.7%
Q2 2011+2.8%
Q1 2010+0.7%
Q1 2011+2.2%
Q4 2010-0.5%
Q3 2009+5.9%
Q3 2010+5.9%
Q4 2009+4.4%
Q2 2009+4.4%
Q2 2010+4.4%

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