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B&G Foods (BGS) to Report Q3 Earnings: What's in Store?
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B&G Foods Inc. (BGS - Free Report) is set to report third-quarter fiscal 2016 results on Oct 27, after market close.
Last quarter, this NJ-based shelf-stable and frozen food company posted a positive earnings surprise of 23.91%. However, the company missed estimates in only one out of the past four quarters, resulting in an average positive surprise of 10.89%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
B&G Foods’ recent acquisitions drove sales in the second quarter while the base business was hurt by lower volumes and currency headwinds. Net sales at the company’s comparable base business decreased 1.3% during the quarter. The company expects base business to remain flat year over year in the second half of 2016.
However, the Mama Mary’s brand and the Green Giant acquisition boosted profits in the first half of 2016, which encouraged management to raise guidance. The company earlier stated that the Green Giant integration is likely to be completed in the third quarter of 2016. These positives should benefit sales and profits in the soon-to-be reported quarter.
Notably, during the second-quarter earnings call, the company raised its fiscal 2016 adjusted EBITDA guidance to the $317 million to $327 million range and adjusted diluted earnings per share guidance to the $2.11–$2.21 band, owing to strong first-half performance and anticipated strength and profitability over the third and fourth quarters. Net sales are projected in the $1.39 billion to $1.42 billion range.
For the fiscal third quarter, the Zacks Consensus Estimate for earnings is pegged at 52 cents, reflecting a 34.36% year-over-year increase. Meanwhile, our estimate for revenues is $336.75 million, implying a 57.88% increase.
Earnings Whispers
Our proven model does not conclusively show that B&G Foods will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is -5.77% as the Most Accurate estimate stands at 49 cents while the Zacks Consensus Estimate is pegged higher at 52 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Though B&G Foods’ Zacks Rank #3 increases the predictive power of ESP, the company’s negative ESP makes a surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the consumer staples sector that can be considered as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
AdvancePierre Foods Holdings, Inc. has an earnings ESP of +6.00% and a Zacks Rank #2. The company is slated to report third-quarter 2016 results on Nov 9.
The Coca-Cola Company (KO - Free Report) has an earnings ESP of +2.08% and a Zacks Rank #3. The company is scheduled to report third-quarter 2016 results on Oct 26.
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B&G Foods (BGS) to Report Q3 Earnings: What's in Store?
B&G Foods Inc. (BGS - Free Report) is set to report third-quarter fiscal 2016 results on Oct 27, after market close.
Last quarter, this NJ-based shelf-stable and frozen food company posted a positive earnings surprise of 23.91%. However, the company missed estimates in only one out of the past four quarters, resulting in an average positive surprise of 10.89%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
B&G Foods’ recent acquisitions drove sales in the second quarter while the base business was hurt by lower volumes and currency headwinds. Net sales at the company’s comparable base business decreased 1.3% during the quarter. The company expects base business to remain flat year over year in the second half of 2016.
However, the Mama Mary’s brand and the Green Giant acquisition boosted profits in the first half of 2016, which encouraged management to raise guidance. The company earlier stated that the Green Giant integration is likely to be completed in the third quarter of 2016. These positives should benefit sales and profits in the soon-to-be reported quarter.
Notably, during the second-quarter earnings call, the company raised its fiscal 2016 adjusted EBITDA guidance to the $317 million to $327 million range and adjusted diluted earnings per share guidance to the $2.11–$2.21 band, owing to strong first-half performance and anticipated strength and profitability over the third and fourth quarters. Net sales are projected in the $1.39 billion to $1.42 billion range.
B&G FOODS CL-A Price and EPS Surprise
B&G FOODS CL-A Price and EPS Surprise | B&G FOODS CL-A Quote
For the fiscal third quarter, the Zacks Consensus Estimate for earnings is pegged at 52 cents, reflecting a 34.36% year-over-year increase. Meanwhile, our estimate for revenues is $336.75 million, implying a 57.88% increase.
Earnings Whispers
Our proven model does not conclusively show that B&G Foods will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is -5.77% as the Most Accurate estimate stands at 49 cents while the Zacks Consensus Estimate is pegged higher at 52 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Though B&G Foods’ Zacks Rank #3 increases the predictive power of ESP, the company’s negative ESP makes a surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the consumer staples sector that can be considered as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
AdvancePierre Foods Holdings, Inc. has an earnings ESP of +6.00% and a Zacks Rank #2. The company is slated to report third-quarter 2016 results on Nov 9.
Avon Products Inc. , slated to report third-quarter 2016 results on Nov 3, has an earnings ESP of +33.33% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Coca-Cola Company (KO - Free Report) has an earnings ESP of +2.08% and a Zacks Rank #3. The company is scheduled to report third-quarter 2016 results on Oct 26.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>