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Is Disappointment in Store for B&G Foods (BGS) in Q1 Earnings?
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B&G Foods, Inc. (BGS - Free Report) is scheduled to release first-quarter 2019 results on May 2. This frozen foods producer’s earnings lagged the Zacks Consensus Estimate by average of 9.9% in the trailing four quarters.
Let’s see how things are placed ahead of the upcoming quarterly results.
The Zacks Consensus Estimate has remained stable in the past 30 days at 51 cents, which indicates a 7.3% decline from the year-ago quarter’s reported figure. Further, the consensus mark for revenues is $409 million compared with $432 million reported in the year-ago period.
Factors Impacting Results
B&G Foods is persistently being affected by increased input and freight expenses. Also, the company expects freight costs to remain a headwind in 2019. This is likely to keep margins under pressure in the quarter to be reported as well. Also, high debt load is a concern, as the company is likely to incur high interest charges.
Apart from this, Pirate Brands’ divestiture is likely to weigh on volumes. However, the McCann’s buyout should provide some cushion to the stock. In fact, we expect B&G Foods’ net sales to be driven by Green Giant, which in turn has been benefiting from increased sales of frozen and shelf-stable products. Also, efficient pricing strategy should serve as a tailwind to B&G Foods in the quarter under review.
What the Zacks Model Unveils
Our proven model does not suggest that B&G Foods is likely to beat bottom-line estimates this quarter. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with ourEarnings ESP Filter.
B&G Foods has an Earnings ESP of 0.00% and Zacks Rank #5 (Strong Sell). Notably, we caution against Zacks Rank #4 (Sell) or 5 stocks going into earnings announcement.
Church & Dwight (CHD - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #2.
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank #2.
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Is Disappointment in Store for B&G Foods (BGS) in Q1 Earnings?
B&G Foods, Inc. (BGS - Free Report) is scheduled to release first-quarter 2019 results on May 2. This frozen foods producer’s earnings lagged the Zacks Consensus Estimate by average of 9.9% in the trailing four quarters.
Let’s see how things are placed ahead of the upcoming quarterly results.
B&G Foods, Inc. Price and EPS Surprise
B&G Foods, Inc. Price and EPS Surprise | B&G Foods, Inc. Quote
What to Expect
The Zacks Consensus Estimate has remained stable in the past 30 days at 51 cents, which indicates a 7.3% decline from the year-ago quarter’s reported figure. Further, the consensus mark for revenues is $409 million compared with $432 million reported in the year-ago period.
Factors Impacting Results
B&G Foods is persistently being affected by increased input and freight expenses. Also, the company expects freight costs to remain a headwind in 2019. This is likely to keep margins under pressure in the quarter to be reported as well. Also, high debt load is a concern, as the company is likely to incur high interest charges.
Apart from this, Pirate Brands’ divestiture is likely to weigh on volumes. However, the McCann’s buyout should provide some cushion to the stock. In fact, we expect B&G Foods’ net sales to be driven by Green Giant, which in turn has been benefiting from increased sales of frozen and shelf-stable products. Also, efficient pricing strategy should serve as a tailwind to B&G Foods in the quarter under review.
What the Zacks Model Unveils
Our proven model does not suggest that B&G Foods is likely to beat bottom-line estimates this quarter. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
B&G Foods has an Earnings ESP of 0.00% and Zacks Rank #5 (Strong Sell). Notably, we caution against Zacks Rank #4 (Sell) or 5 stocks going into earnings announcement.
Stocks Poised to Beat Earnings Estimates
Estee Lauder (EL - Free Report) has an Earnings ESP of +0.77% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Church & Dwight (CHD - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #2.
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank #2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>