TreeHouse Foods Issues Q2 Adj. EPS Guidance; Tightens 2016 Earnings Guidance

(RTTNews) - TreeHouse Foods, Inc. (THS), announced the company expects second quarter adjusted earnings per share to be in the range of $0.50 to $0.55. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.61. Analysts' estimates typically exclude special items.

The company expects second-quarter year-over-year earnings comparisons will be challenged, similar to the first quarter, due to the duplicative costs resulting from the Private Brands acquisition and the lower margin structure the new business has compared to the legacy TreeHouse business.

TreeHouse tightened its full year guidance to a range of $3.00 to $3.10 in adjusted earnings per share in 2016. Analysts polled by Thomson Reuters expect the company to report profit per share of $3.03.

The company reported a first quarter GAAP loss of $0.06 per share compared to earnings of $0.41 per share, last year. The company reported adjusted earnings per share of $0.48 compared to $0.59 in the first quarter of the prior year. On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $0.41 for the quarter. Analysts' estimates typically exclude special items.

Net sales for the first quarter totaled $1.27 billion compared to $783.1 million last year, an increase of 62.2%, due to the inclusion of business from the Private Brands acquisition, partially offset by lower volume/mix, primarily in the Industrial and Export segment, and unfavorable Canadian foreign exchange. Analysts expected revenue of $1.27 billion, for the quarter.