B&G Foods (NYSE:BGS) is set to announce its earnings this Tuesday after the market closes. Here’s what’s going on.
Last quarter, B&G Foods posted revenues of $539.6 million. That’s down 2.2% compared to last year, which wasn’t great. They also missed their earnings-per-share (EPS) estimates, and their full-year revenue guidance fell short of what analysts had hoped for. This raises the question: Is B&G Foods a buy or a sell right now?
For this quarter, analysts expect a revenue drop of about 6.1%, but that’s an improvement from the 10.5% decline in the same quarter last year. Many analysts have revised their estimates over the last month, indicating they believe B&G Foods will maintain its current performance.
It’s worth noting that B&G Foods has struggled with revenue targets, missing Wall Street estimates several times in the past two years.
When we look at B&G Foods’ competitors in the shelf-stable food sector, we see varying results. Hershey reported a 10.6% increase in revenue, surpassing expectations. Meanwhile, Lamb Weston saw a revenue growth of 2.9%, also beating forecasts. Interestingly, even these strong results didn’t help their stock prices, as Hershey fell by 3.6%, and Lamb Weston dropped 6.9%.
In terms of stock performance leading into earnings, share prices in this sector have remained stable over the last month. B&G Foods’ stock hasn’t moved much and currently trades at around $5.40, with an average analyst target of $5.20.
Recent trends indicate a growing interest in the packaged food sector. According to a survey by Statista, 62% of consumers are more inclined to choose shelf-stable products due to their longer shelf life and convenience, especially post-pandemic. This consumer behavior could play a crucial role in shaping B&G Foods’ performance going forward.
Keeping an eye on market sentiment and competitor performance could provide valuable insights as B&G Foods gets closer to releasing its earnings.
For more details on Hershey’s and Lamb Weston’s results, check the respective analyses linked here.
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