NEW YORK (TheStreet) -- Shares of TreeHouse Foods (THS) were tumbling 19.77% to $69.56 on heavy trading volume early-afternoon Thursday as the Oak Brook, IL-based company reported lower-than-expected results for the 2016 third quarter.
Additionally, TreeHouse President Christopher Sliva is resigning and will be succeeded by CFO Dennis Riordan, who was slated to retire. Matthew Foulston, CFO of minerals producer Compass Minerals (CMP), will begin serving as CFO no later than Dec. 2.
Before today's market open, TreeHouse posted adjusted earnings of 70 cents per share, below analysts' estimates of 78 cents per share.
Revenue came in at $1.59 billion, falling short of Wall Street's expected $1.64 billion.
"The third quarter was a tale of two cities," said TreeHouse's CEO Sam Reed in a statement. "Our legacy business continued to perform well...on the other hand, while the private brands business showed sequential improvement, its results fell short of our expectations for the quarter."
TreeHouse acquired ConAgra Foods' (CAG) private brands business earlier this year for $2.7 billion.
The company now expects fourth-quarter adjusted earnings to be in the range of $1.07 to $1.12, which is lower than the FactSet consensus of $1.25 per share.
For 2016, TreeHouse projects adjusted earnings between $2.80 and $2.85, below the FactSet consensus of $3.07 per share.
TreeHouse Foods also said it will be shuttering its Delta, British Columbia-based facility in early 2018. The unit produces frozen griddle products and has about 90 employees.
The company is also partially closing its Battle Creek, MI-based ready-to-eat cereal production facility, which is expected to impact about 100 of 160 employees beginning in January 2017.
More than 4.70 million TreeHouse shares have traded so far today vs. the 30-day average of 648,018.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates TreeHouse as a Buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in stock price during the past year. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: THS