B&G Foods (BGS) to Post Q2 Earnings: What's in the Cards?
Zacks Equity Research
Wed, August 3, 2022, 3:19 PM·5 min read
B&G Foods, Inc. BGS is likely to witness year-over-year growth in the top line when it reports second-quarter 2022 earnings on Aug 4. The Zacks Consensus Estimate for revenues is pegged at $480.2 million, suggesting an increase of 3.4% from the prior-year quarter’s reported figure.
B&G Foods’ bottom line is likely to decline from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has been stable in the past 30 days at 26 cents per share. The projection suggests a decline of 36.6% from the figure reported in the prior-year period.
We expect the top line to be up 3% year over year to $478.3 million and the bottom line to decline 27.5% to 30 cents per share.
BGS manufactures, sells and distributes a portfolio of shelf-stable, and frozen foods and household products. B&G Foods has a trailing four-quarter negative earnings surprise of 8.6%, on average. BGS witnessed a negative earnings surprise of 12.8% in the last reported quarter.
Things to Consider
B&G Foods is constantly witnessing higher demand for its products as consumers continue to cook and bake at home, a trend fueled by the pandemic. BGS is focused on solidifying its brand portfolio through acquisitions of complementary branded businesses, developing new products, and utilizing its multiple channel sales and distribution system. Prudent buyouts like Crisco, Farmwise and Clabber Girl have been yielding well for BGS for a while. All these factors are likely to have contributed to BGS’ second-quarter 2022 sales performance.
However, B&G Foods has been battling cost inflation for a while. On its last earnings call, management highlighted that it expects to witness higher cost inflation for inputs, such as ingredients, packaging and transportation due to factors like the pandemic, the Ukraine war, weather conditions, supply-chain hurdles and the shortage of labor. These factors are most likely to have weighed on the bottom-line performance in the quarter under review.
What the Zacks Model Unveils
Our proven model does not 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
BGS has an Earnings ESP of 0.00% and a Zacks Rank #3.
