Current Estimates On TreeHouse Foods Could Indicate Significant Earnings Miss For The Year

In a report published Friday, Stifel analyst Christopher Growe reiterated a Buy rating on TreeHouse Foods (NYSE: THS), but lowered the price target from $95.00 to $90.00.

In the report, Stifel noted, "TreeHouse reported its 4Q14 EPS of $0.99, up 1%, and $0.18 below our estimate. This quarter came in below expectations due to a significant inventory reduction late in 4Q14 from a large customer, slower consumption at Flagstone (nuts, trail mixes, etc.), and currency headwinds (Canadian dollar)."

The report continued, "The company provided EPS guidance of $3.80 to $3.95 which was well below our consensus matching $4.15 EPS estimate for 2015 and if left there would indicate a significant earnings miss for the year; however, this earnings guidance includes an unprecedented $0.30 drag on EPS from FX."

TreeHouse Foods closed on Thursday at $81.57.