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B&G Foods (BGS) Stock Down on Q2 Earnings & Revenue Miss

Shares of B&G Foods, Inc. BGS declined over 7% in afterhours trading on Aug 3, after the company reported lower-than-expected results in second-quarter 2017.

Earnings and Revenue Discussion

Adjusted earnings per share of 41 cents missed the Zacks Consensus Estimate of 49 cents by 16.3%. Earnings also decreased 28.1% from the year-ago quarter.
Total revenue of $368.1 million missed the Zacks Consensus Estimate of $382.7 million by 3.8%.

Revenues, however, increased 20.2% year over year. The spices & seasonings business (acquired in Nov 2016) contributed $67.4 million while Victoria Fine Foods (acquired in Dec 2016) added $9.7 million.

Net sales at the company’s base business decreased 4.9% during the quarter due to a 3.8% decline in volumes and 1.1% decrease in net pricing.

Inside the Headline Numbers

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 8% to $78.2 million during the quarter.

Selling, general and administrative expenses increased 46.3% to $49.6 million from the prior-year quarter, primarily due to marketing, acquisition-related expenses and warehousing expenses.

B&G Foods ended the quarter with cash and cash equivalents of $51.7 million, as of Jul 1, 2017, compared with $28.8 million as of Dec 31, 2016.

B&G Foods, Inc. Price, Consensus and EPS Surprise


2017 Guidance Updated

The company expects 2017 adjusted earnings per share in the range of $2.03–$2.17 ($2.13–$2.27 expected earlier). The Zacks Consensus Estimate for 2017 earnings per share is currently pegged at $2.22.

Net sales are expected between $1.64 billion and $1.67 billion ($1.64--$1.68 billion expected earlier). The Zacks Consensus Estimate for 2017 revenues is currently pegged at $1.68 billion.

Adjusted EBITDA is now projected in the range of $352.5 million to $367.5 million ($360 million to $375 million expected earlier).

Zacks Rank & Peer Releases

B&G Foods currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

General Mills Inc.’s GIS cost-saving initiatives have helped it post better-than-expected results in fourth-quarter fiscal 2017 along with a solid increase in adjusted operating profit margin. Total revenues however declined 3% year over year owing to lower organic sales.

The Hershey Company HSY beat the Zacks Consensus Estimate for earnings and revenues in second-quarter 2017 by 19.8% and 0.7%, respectively.

Dr Pepper Snapple Group Inc. DPS reported second-quarter 2017 results, with earnings missing the Zacks Consensus Estimate by 2.3% and revenues beating the same by 1.7%.

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