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Factors Worth Watching Ahead of B&G Foods' (BGS) Q1 Earnings
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B&G Foods, Inc. (BGS - Free Report) is scheduled to release first-quarter 2020 results on May 5. The company’s earnings came in line with the Zacks Consensus Estimate in the last reported quarter. Notably, the company delivered a positive earnings surprise of 0.2%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 43 cents per share, which suggests a decrease of 2.3% from the figure reported in the year-ago quarter. The consensus mark has remained stable in the past 30 days. The consensus mark for revenues stands at $420 million, indicating a rise of 1.8% from the year-ago period’s reported figure.
B&G Foods has been benefiting from contributions from buyouts as well as an efficient pricing strategy. To this end, the company recently acquired Farmwise, while it is also gaining from the inclusion of Clabber Girl (acquired in May 2019). Apart from this, the buyout of the Green Giants brand has been fruitful. Markedly, Green Giants has emerged as one of the leading brands of the company.
In fact, in its last earnings call, management said that it expects Green Giant to be a leading brand in 2020, courtesy of its range of innovation across frozen food categories, outside frozen vegetables. Additionally, B&G Foods’ strategic pricing initiatives have been playing an important role in driving revenues for a while now. Management expects efficient pricing and the ongoing cost-saving efforts to help the company counter input cost inflation in 2020.
Incidentally, the company has been battling increased inputs costs for a while now due to a short agriculture crop season. Also, any rise in general and administrative expenses and escalated selling costs remain a threat. Cost inflation is likely to persist in 2020 for inputs, tariffs and labor that poses a threat to the quarter under review.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for B&G Foods this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Hain Celestial (HAIN - Free Report) has an Earnings ESP of +9.24% and a Zacks Rank #1.
TreeHouse Foods (THS - Free Report) has an Earnings ESP of +35.42% and a Zacks Rank #3.
Flowers Foods (FLO - Free Report) has an Earnings ESP of +7.77% and a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Factors Worth Watching Ahead of B&G Foods' (BGS) Q1 Earnings
B&G Foods, Inc. (BGS - Free Report) is scheduled to release first-quarter 2020 results on May 5. The company’s earnings came in line with the Zacks Consensus Estimate in the last reported quarter. Notably, the company delivered a positive earnings surprise of 0.2%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 43 cents per share, which suggests a decrease of 2.3% from the figure reported in the year-ago quarter. The consensus mark has remained stable in the past 30 days. The consensus mark for revenues stands at $420 million, indicating a rise of 1.8% from the year-ago period’s reported figure.
B&G Foods, Inc. Price, Consensus and EPS Surprise
B&G Foods, Inc. price-consensus-eps-surprise-chart | B&G Foods, Inc. Quote
Key Factors to Note
B&G Foods has been benefiting from contributions from buyouts as well as an efficient pricing strategy. To this end, the company recently acquired Farmwise, while it is also gaining from the inclusion of Clabber Girl (acquired in May 2019). Apart from this, the buyout of the Green Giants brand has been fruitful. Markedly, Green Giants has emerged as one of the leading brands of the company.
In fact, in its last earnings call, management said that it expects Green Giant to be a leading brand in 2020, courtesy of its range of innovation across frozen food categories, outside frozen vegetables. Additionally, B&G Foods’ strategic pricing initiatives have been playing an important role in driving revenues for a while now. Management expects efficient pricing and the ongoing cost-saving efforts to help the company counter input cost inflation in 2020.
Incidentally, the company has been battling increased inputs costs for a while now due to a short agriculture crop season. Also, any rise in general and administrative expenses and escalated selling costs remain a threat. Cost inflation is likely to persist in 2020 for inputs, tariffs and labor that poses a threat to the quarter under review.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for B&G Foods this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
B&G Foods carries a Zacks Rank #1 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Hain Celestial (HAIN - Free Report) has an Earnings ESP of +9.24% and a Zacks Rank #1.
TreeHouse Foods (THS - Free Report) has an Earnings ESP of +35.42% and a Zacks Rank #3.
Flowers Foods (FLO - Free Report) has an Earnings ESP of +7.77% and a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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