NEW YORK—Shares of food maker Treehouse Foods Inc. jumped Thursday after the company said its adjusted profit beat Wall Street analysts' estimates in the first quarter.
Shares climbed $2.20, or 10 percent, to $24.20 in afternoon trading.
Before the market opened, the company said its profit fell to $2.1 million, or 7 cents per share, from $7.4 million, or 24 cents per share, in the prior-year quarter.
Excluding hefty plant closure costs and a loss on currency translation, the company said it earned 34 cents per share.
Analysts polled by Thomson Financial expected profit of 25 cents per share. Analyst estimates typically exclude one-time items.
Revenue rose 39 percent to $360.6 million from $259 million in the first quarter of 2007. Analysts predicted revenue of $348.3 million.
Treehouse said it benefited from several acquisitions in 2007 that contributed to higher revenue, including its purchase of condiments maker E.D. Smith.
Lehman Brothers analyst Andrew Lazar said in a note to investors that higher prices also helped sales.
He said the higher prices should help the company keep its margins intact even as food ingredient prices continue to rise.
"We continue to believe that Treehouse should be able to cover input cost inflation year-over-year through the combination of pricing and productivity, though the timing of pricing could at times lag the rate at which costs are increasing," he said.
He added that Treehouse could benefit from any shift in consumer behavior toward buying more private-label products, which are typically lower priced.
Treehouse said it anticipates profit between 29 cents and 32 cents per share for the second quarter, excluding charges and gains. Analysts predict profit of 31 cents per share.
For the year, the company expects profit of $1.50 to $1.55 per share, excluding special items. Analysts see earnings of $1.52 per share.
