TreeHouse Foods (THS, $59.95) beat Q4 earnings, but misses net sales expectations
TreeHouse Foods, Inc. managed to edge past earnings expectations for the fourth quarter 2018, but failed to show the same strength in its top-line numbers.
The food processing company’s adjusted earnings for the quarter came in at $1.03 per share, beating Zacks Consensus Estimate of 96 cents per share. The earnings-per-share was also higher than the year-ago quarter’s figure. It was 5% more compared to the mid-point of the previous guidance of 88 cents and $1.08. The firm's cost saving plans like Structure to Win apparently was a tailwind to the profitability.
Net sales of $ 1,481.1 million, however, fell short of the consensus estimate of $1,493 million. It was also lower from the year-ago period by -12.9%. Divestiture of McCann's business and foreign currency headwinds were among factors that apparently hurt revenues.
Nevertheless, the company’s gross margin was 17.6%, which is 240 basis points higher from the year-ago quarter’s figure.
THS's Indicator enters downward trend
The Aroon Indicator for THS entered a downward trend on December 31, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 165 similar instances where the Aroon Indicator formed such a pattern. In of the 165 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 68 cases where THS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
THS moved below its 50-day moving average on January 06, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where THS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
THS broke above its upper Bollinger Band on December 24, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The 10-day moving average for THS crossed bullishly above the 50-day moving average on January 08, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where THS advanced for three days, in of 282 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. THS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.252) is normal, around the industry mean (6.547). P/E Ratio (36.857) is within average values for comparable stocks, (27.022). Projected Growth (PEG Ratio) (1.297) is also within normal values, averaging (2.471). Dividend Yield (0.000) settles around the average of (0.043) among similar stocks. P/S Ratio (0.636) is also within normal values, averaging (67.660).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. THS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock worse than average.
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General Information
a manufacturer of pickles, coffee creamer, sauces and salad dressing
Industry FoodSpecialtyCandy