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B&G Foods (BGS) Stock Down on Q2 Earnings & Revenue Miss
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Shares of B&G Foods, Inc. (BGS - Free Report) declined over 7% in afterhours trading on Aug 3, after the company reported lower-than-expected results in second-quarter 2017.
Earnings and Revenue Discussion
Adjusted earnings per share of 41 cents missed the Zacks Consensus Estimate of 49 cents by 16.3%. Earnings also decreased 28.1% from the year-ago quarter.
Total revenue of $368.1 million missed the Zacks Consensus Estimate of $382.7 million by 3.8%.
Revenues, however, increased 20.2% year over year. The spices & seasonings business (acquired in Nov 2016) contributed $67.4 million while Victoria Fine Foods (acquired in Dec 2016) added $9.7 million.
Net sales at the company’s base business decreased 4.9% during the quarter due to a 3.8% decline in volumes and 1.1% decrease in net pricing.
Inside the Headline Numbers
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 8% to $78.2 million during the quarter.
Selling, general and administrative expenses increased 46.3% to $49.6 million from the prior-year quarter, primarily due to marketing, acquisition-related expenses and warehousing expenses.
B&G Foods ended the quarter with cash and cash equivalents of $51.7 million, as of Jul 1, 2017, compared with $28.8 million as of Dec 31, 2016.
The company expects 2017 adjusted earnings per share in the range of $2.03–$2.17 ($2.13–$2.27 expected earlier). The Zacks Consensus Estimate for 2017 earnings per share is currently pegged at $2.22.
Net sales are expected between $1.64 billion and $1.67 billion ($1.64--$1.68 billion expected earlier). The Zacks Consensus Estimate for 2017 revenues is currently pegged at $1.68 billion.
Adjusted EBITDA is now projected in the range of $352.5 million to $367.5 million ($360 million to $375 million expected earlier).
General Mills Inc.’s (GIS - Free Report) cost-saving initiatives have helped it post better-than-expected results in fourth-quarter fiscal 2017 along with a solid increase in adjusted operating profit margin. Total revenues however declined 3% year over year owing to lower organic sales.
The Hershey Company (HSY - Free Report) beat the Zacks Consensus Estimate for earnings and revenues in second-quarter 2017 by 19.8% and 0.7%, respectively.
Dr Pepper Snapple Group Inc. reported second-quarter 2017 results, with earnings missing the Zacks Consensus Estimate by 2.3% and revenues beating the same by 1.7%.
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B&G Foods (BGS) Stock Down on Q2 Earnings & Revenue Miss
Shares of B&G Foods, Inc. (BGS - Free Report) declined over 7% in afterhours trading on Aug 3, after the company reported lower-than-expected results in second-quarter 2017.
Earnings and Revenue Discussion
Adjusted earnings per share of 41 cents missed the Zacks Consensus Estimate of 49 cents by 16.3%. Earnings also decreased 28.1% from the year-ago quarter.
Total revenue of $368.1 million missed the Zacks Consensus Estimate of $382.7 million by 3.8%.
Revenues, however, increased 20.2% year over year. The spices & seasonings business (acquired in Nov 2016) contributed $67.4 million while Victoria Fine Foods (acquired in Dec 2016) added $9.7 million.
Net sales at the company’s base business decreased 4.9% during the quarter due to a 3.8% decline in volumes and 1.1% decrease in net pricing.
Inside the Headline Numbers
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 8% to $78.2 million during the quarter.
Selling, general and administrative expenses increased 46.3% to $49.6 million from the prior-year quarter, primarily due to marketing, acquisition-related expenses and warehousing expenses.
B&G Foods ended the quarter with cash and cash equivalents of $51.7 million, as of Jul 1, 2017, compared with $28.8 million as of Dec 31, 2016.
B&G Foods, Inc. Price, Consensus and EPS Surprise
B&G Foods, Inc. Price, Consensus and EPS Surprise | B&G Foods, Inc. Quote
2017 Guidance Updated
The company expects 2017 adjusted earnings per share in the range of $2.03–$2.17 ($2.13–$2.27 expected earlier). The Zacks Consensus Estimate for 2017 earnings per share is currently pegged at $2.22.
Net sales are expected between $1.64 billion and $1.67 billion ($1.64--$1.68 billion expected earlier). The Zacks Consensus Estimate for 2017 revenues is currently pegged at $1.68 billion.
Adjusted EBITDA is now projected in the range of $352.5 million to $367.5 million ($360 million to $375 million expected earlier).
Zacks Rank & Peer Releases
B&G Foods currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Mills Inc.’s (GIS - Free Report) cost-saving initiatives have helped it post better-than-expected results in fourth-quarter fiscal 2017 along with a solid increase in adjusted operating profit margin. Total revenues however declined 3% year over year owing to lower organic sales.
The Hershey Company (HSY - Free Report) beat the Zacks Consensus Estimate for earnings and revenues in second-quarter 2017 by 19.8% and 0.7%, respectively.
Dr Pepper Snapple Group Inc. reported second-quarter 2017 results, with earnings missing the Zacks Consensus Estimate by 2.3% and revenues beating the same by 1.7%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>