TreeHouse has a long history of making smart acquisitions. However, some investors were displeased a little over a year ago when the company announced it was buying the private-label cereal business called Ralcorp from Conagra for $2.7 billion.
That was a lot less than what Conagra paid for it in 2013, but the view of Ralcorp was that it was not a winner. So, when TreeHouse last reported three months ago, the results were light, and shares of TreeHouse fell.
Hence, it was a huge surprise for Wall Street when TreeHouse knocked earnings out of the park on Thursday. CEO Sam Reed told "Mad Money" host Jim Cramer that the company realized it was too focused on the carve-out from ConAgra in the previous quarter.
"Once we realized that was taking people away from their day jobs we got that group back and in a fury they went about their business," Reed said.