Overview

* TreeHouse Q3 net sales rose 0.1% yr/yr but missed analyst expectations

* Company reports Q3 net loss of $265.8 mln due to goodwill impairment

* TreeHouse Foods ( THS ) to be acquired by Investindustrial for $2.9 bln, guidance withdrawn

Outlook

* TreeHouse Foods ( THS ) withdraws guidance due to pending acquisition by Investindustrial

Result Drivers

* PRICING STRATEGY - Co attributes net sales increase to favorable pricing to recover commodity inflation

* ACQUISITION IMPACT - Harris Tea acquisition contributed to gross profit improvement and net sales growth

* VOLUME DECLINE - Decline in volume/mix due to macroeconomic trends and planned margin management actions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $840.30 $851.70

mln mln (7

Analysts

)

Q3 EPS -$5.26

Q3 Net -$265.80

Income mln

From

Cont Ops

Q3 $91.60

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "buy."

* Wall Street's median 12-month price target for TreeHouse Foods Inc ( THS ) is $21.00, about 9.3% above its November 7 closing price of $19.05

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)