For me the biggest breaking earnings news this week, where companies reported significant and sustainable increases in earnings, were firstly Treehouse Foods, the private label foods manufacturer, which reported a 29% increase on earnings per share and beat consensus estimates by 14%. Overall revenues were up 19% due to strong growth in pickles, salad dressings and single serve coffee capsules. With all three business divisions posting earnings improvement, rising between 14% and 33%, the company raised full year EPS guidance by 10 to 15 cents to $3.60 to $3.75.
Next up student textbook resale site Chegg reported revenue growth of 15% and digital revenue growth of 54% in its second quarter earnings report. CEO Dan Rosensweig also announced a transformational partnership with Ingram Content to focus on becoming a purely digital company within a few years.
Avis Budget Group reported a 36% jump in earnings as revenues grow 10% and pricing improves. Company raises full year guidance.
Finally, in the pink sheets, Pirelli reported a 28.5% increase in earnings on the back of a 56% jump in premium products sales and in spite of an overall reduction in revenues. The company raised its guidance slightly for the consumer business. The company is currently trading on a PE of 16.46.
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The author is a blogger for SurgingEarnings.Com
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