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B&G Foods (BGS) Q4 Earnings, Sales Lag Estimates; Stock Down
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Shares of B&G Foods, Inc. (BGS - Free Report) declined over 6% in afterhours trading on Feb 23, after the company reported lower-than-expected fourth-quarter 2016 results.
Earnings and Revenues Discussion
Adjusted earnings per share of 29 cents, missing the Zacks Consensus Estimate of 41 cents by 29.3%. Earnings also decreased 32.6% from the year-ago quarter due to an increase in consumer marketing spending associated with the relaunch of the Green Giant brand.
Total revenue of $413.7 million missed the Zacks Consensus Estimate of $431.8 million by 4.2%.
Revenues, however, increased 20.8% year over year driven by strong sales at Green Giant which was acquired in Nov 2015. Net sales contribution from the Green Giant brand was $46.5 million during the quarter.
Also, net sales of $28.2 million from the spices and seasonings business, acquired on Nov 21, 2016, and net sales of $3.2 million from Victoria Fine Foods, acquired on Dec 2, 2016, contributed to total net sales in the quarter.
Net sales at the company’s base business decreased 1.6% during the quarter due to a 0.6% decline in volume and 1.1% decrease in net pricing.
Inside the Headline Numbers
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 7.4% to $62.4 million during the quarter.
Selling, general and administrative expenses increased 60.6% to $58.8 million from the prior-year quarter, primarily due to the Green Giant acquisition.
B&G Foods’ full-year adjusted earnings of $2.07 missed the Zacks Consensus Estimate of $2.19 by 5.5%. Nonetheless, it increased 35.3% from the year-ago quarter.
Full-year revenues of $1.39 billion missed the Zacks Consensus Estimate of $1.41 billion, but increased 44% year over year.
Financials
B&G Foods ended the quarter with cash and cash equivalents of $28.8 million, as of Dec 31, 2016, compared with $5.2 million as of Jan 2, 2016.
The company returned $100.8 million to stockholders in the form of dividends during the year.
2017 Outlook
The company expects 2017 adjusted earnings per share in the range of $2.13–$2.27. The Zacks Consensus Estimate for 2017 earnings is currently pegged at $2.43 per share.
Net sales are expected between $1.64 billion and $1.68 billion.
Adjusted EBITDA is now projected in the range of $360 million to $375 million.
Mondelez International, Inc. (MDLZ - Free Report) reported fourth-quarter 2016 results, wherein earnings and revenues missed the Zacks Consensus Estimate. The underperformance was mainly due to a stronger dollar that impacted sales outside the U.S.
The Hershey Company’s (HSY - Free Report) fourth-quarter 2016 earnings beat the Zacks Consensus Estimate while sales missed the same. Earnings benefited from higher sales in North America. Hershey’s fourth-quarter adjusted earnings per share of $1.17 also beat the year-ago profit of $1.08 by 8.3%.
J&J Snack Foods Corp. (JJSF - Free Report) , a leading snack food provider, reported first-quarter fiscal 2017 earnings of 72 cents per share, surpassing the Zacks Consensus Estimate of 64 cents by 12.5%.
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B&G Foods (BGS) Q4 Earnings, Sales Lag Estimates; Stock Down
Shares of B&G Foods, Inc. (BGS - Free Report) declined over 6% in afterhours trading on Feb 23, after the company reported lower-than-expected fourth-quarter 2016 results.
Earnings and Revenues Discussion
Adjusted earnings per share of 29 cents, missing the Zacks Consensus Estimate of 41 cents by 29.3%. Earnings also decreased 32.6% from the year-ago quarter due to an increase in consumer marketing spending associated with the relaunch of the Green Giant brand.
Total revenue of $413.7 million missed the Zacks Consensus Estimate of $431.8 million by 4.2%.
Revenues, however, increased 20.8% year over year driven by strong sales at Green Giant which was acquired in Nov 2015. Net sales contribution from the Green Giant brand was $46.5 million during the quarter.
Also, net sales of $28.2 million from the spices and seasonings business, acquired on Nov 21, 2016, and net sales of $3.2 million from Victoria Fine Foods, acquired on Dec 2, 2016, contributed to total net sales in the quarter.
Net sales at the company’s base business decreased 1.6% during the quarter due to a 0.6% decline in volume and 1.1% decrease in net pricing.
Inside the Headline Numbers
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 7.4% to $62.4 million during the quarter.
Selling, general and administrative expenses increased 60.6% to $58.8 million from the prior-year quarter, primarily due to the Green Giant acquisition.
B&G Foods, Inc. Price, Consensus and EPS Surprise
B&G Foods, Inc. Price, Consensus and EPS Surprise | B&G Foods, Inc. Quote
2016 Results
B&G Foods’ full-year adjusted earnings of $2.07 missed the Zacks Consensus Estimate of $2.19 by 5.5%. Nonetheless, it increased 35.3% from the year-ago quarter.
Full-year revenues of $1.39 billion missed the Zacks Consensus Estimate of $1.41 billion, but increased 44% year over year.
Financials
B&G Foods ended the quarter with cash and cash equivalents of $28.8 million, as of Dec 31, 2016, compared with $5.2 million as of Jan 2, 2016.
The company returned $100.8 million to stockholders in the form of dividends during the year.
2017 Outlook
The company expects 2017 adjusted earnings per share in the range of $2.13–$2.27. The Zacks Consensus Estimate for 2017 earnings is currently pegged at $2.43 per share.
Net sales are expected between $1.64 billion and $1.68 billion.
Adjusted EBITDA is now projected in the range of $360 million to $375 million.
B&G Foods currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Mondelez International, Inc. (MDLZ - Free Report) reported fourth-quarter 2016 results, wherein earnings and revenues missed the Zacks Consensus Estimate. The underperformance was mainly due to a stronger dollar that impacted sales outside the U.S.
The Hershey Company’s (HSY - Free Report) fourth-quarter 2016 earnings beat the Zacks Consensus Estimate while sales missed the same. Earnings benefited from higher sales in North America. Hershey’s fourth-quarter adjusted earnings per share of $1.17 also beat the year-ago profit of $1.08 by 8.3%.
J&J Snack Foods Corp. (JJSF - Free Report) , a leading snack food provider, reported first-quarter fiscal 2017 earnings of 72 cents per share, surpassing the Zacks Consensus Estimate of 64 cents by 12.5%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>