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Factors Likely to Decide B&G Foods' (BGS) Fate in Q3 Earnings

Zacks Equity Research

B&G Foods, Inc. BGS is scheduled to release third-quarter 2019 results on Oct 31. This frozen food and household products provider delivered a positive earnings surprise of 8.6% in the last reported quarter. However, it has underperformed the Zacks Consensus Estimate by average of 10.8% in the trailing four quarters.

Let’s see what’s in store for the company this time around.

B&G Foods, Inc. Price and EPS Surprise

B&G Foods, Inc. Price and EPS Surprise

B&G Foods, Inc. price-eps-surprise | B&G Foods, Inc. Quote

What to Expect?

The Zacks Consensus Estimate for third-quarter earnings has gone down by 5.6% over the past 30 days to 51 cents. In fact, this suggests a decline of 10.5% from the year-ago period’s reported figure. The consensus mark for revenues is $398 million, indicating a drop of more than 5.5% from the figure reported in the year-ago quarter.

Factors at Play

B&G Foods is likely to have benefited from strong pricing initiatives during the third quarter, which have been aiding its revenues for quite some time now. Also, continued gains from the buyout of Green Giant is likely to have yielded favorable results for the company in the quarter.

However, the divestiture of Pirate Brands to Hershey is likely to show on the company’s sales. Apart from these, B&G Foods’ bottom line is expected to reflect the impacts of higher input costs stemming from elevated freight, warehouse and procurement expenses.

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.

B&G Foods has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

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:

Church & Dwight CHD has an Earnings ESP of +0.22% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tyson Foods TSN has an Earnings ESP of +1.90% and a Zacks Rank #2.

Newell Brands NWL has an Earnings ESP of +6.73% and a Zacks Rank #3.

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