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Food Stocks Earnings Lined Up for Aug 3: MED, MGPI & OME

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The Q2 earnings season is past the halfway mark and growth is still not visible. The quarter is on track to be the fifth in a row to record an earnings decline for the S&P 500 index. Having said that, the rate of decline is seen to be moderating from the previous quarter, pacifying investors' concern.

If we summarize the performance of the 317 S&P 500 members that have reported financial results so far, we will see that 72.9% of the companies beat on earnings and 53.6% surpassed revenue estimates, as per our Earnings Preview report. However, total earnings for these companies were down 3.3% year over year while revenues declined 0.9%. 

Investors now want to ascertain the most attractive picks as the market has begun to stabilize after the Brexit referendum, which shook the global economy in Jun 2016. Following the mandate, investors have become jittery and are resorting to safe haven stocks. In this scenario, the consumer staples sector appears to be quite reliable.

In the consumer staples sector, 51.6% companies have reported Q2 earnings as of Jul 29. Out of these, 81.3% of the companies have posted an earnings beat, while 43.8% have surpassed revenue estimates.

Overall, the consumer staples sector has reported modest results this quarter. Lower gas prices, an improving job scenario and increasing consumer confidence have been supporting the improvement in results.

Though total earnings for the sector are expected to drop 1.4% due to flat revenues and 0.2% lower margins, the sector might prove to be profitable in the long term.

Food stocks are particularly doing well in Q2. Leading firms from the industry like The Hershey’s Company (HSY - Free Report) , Pinnacle Foods, Inc. , B&G Foods, Inc. (BGS - Free Report) , Colgate-Palmolive Co. (CL - Free Report) , Mondelez International, Inc. (MDLZ - Free Report) and many others have delivered better-than-expected Q2 earnings results despite currency headwinds and the sluggishness in emerging markets.

Here we have three food stocks, which are scheduled to release their second-quarter numbers on Aug 3. Let's see how things are shaping up for their announcements.

Medifast Inc. (MED - Free Report) , which is engaged in production, distribution, and sale of consumable health and diet products, is scheduled to report after market close. It has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for second quarter earnings is pegged at 50 cents per share. Additionally, the company has delivered an average positive earnings surprise of 7.18% in the trailing four quarters.

MEDIFAST INC Price and EPS Surprise

MEDIFAST INC Price and EPS Surprise | MEDIFAST INC Quote

MGP Ingredients Inc. (MGPI - Free Report) is slated to release its results before the opening bell. This producer and marketer of ingredients and distillery products has an Earnings ESP of +2.50% and a Zacks Rank #3. The Zacks Consensus Estimate for second quarter earnings is pegged at 40 cents.

MGP INGREDIENTS Price and EPS Surprise

MGP INGREDIENTS Price and EPS Surprise | MGP INGREDIENTS Quote

Omega Protein Corporation is a producer of edible fish oil. It will report its results after market close. It has an Earnings ESP of +11.63% and a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate is pegged at 43 cents. Additionally, the company has delivered an average positive earnings surprise of 25.04% in the trailing four quarters.

OMEGA PROTEIN Price and EPS Surprise

OMEGA PROTEIN Price and EPS Surprise | OMEGA PROTEIN Quote

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