Shares of B&G Foods, Inc. BGS declined over 6% in afterhours trading on Feb 23, after the company reported lower-than-expected fourth-quarter 2016 results.
Earnings and Revenues Discussion
Adjusted earnings per share of 29 cents, missing the Zacks Consensus Estimate of 41 cents by 29.3%. Earnings also decreased 32.6% from the year-ago quarter due to an increase in consumer marketing spending associated with the relaunch of the Green Giant brand.
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Total revenue of $413.7 million missed the Zacks Consensus Estimate of $431.8 million by 4.2%.
Revenues, however, increased 20.8% year over year driven by strong sales at Green Giant which was acquired in Nov 2015. Net sales contribution from the Green Giant brand was $46.5 million during the quarter.
Also, net sales of $28.2 million from the spices and seasonings business, acquired on Nov 21, 2016, and net sales of $3.2 million from Victoria Fine Foods, acquired on Dec 2, 2016, contributed to total net sales in the quarter.
Net sales at the company’s base business decreased 1.6% during the quarter due to a 0.6% decline in volume and 1.1% decrease in net pricing.
Inside the Headline Numbers
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 7.4% to $62.4 million during the quarter.
Selling, general and administrative expenses increased 60.6% to $58.8 million from the prior-year quarter, primarily due to the Green Giant acquisition.
B&G Foods, Inc. Price, Consensus and EPS Surprise
B&G Foods, Inc. Price, Consensus and EPS Surprise | B&G Foods, Inc. Quote
B&G Foods’ full-year adjusted earnings of $2.07 missed the Zacks Consensus Estimate of $2.19 by 5.5%. Nonetheless, it increased 35.3% from the year-ago quarter.
Full-year revenues of $1.39 billion missed the Zacks Consensus Estimate of $1.41 billion, but increased 44% year over year.
B&G Foods ended the quarter with cash and cash equivalents of $28.8 million, as of Dec 31, 2016, compared with $5.2 million as of Jan 2, 2016.
The company returned $100.8 million to stockholders in the form of dividends during the year.
The company expects 2017 adjusted earnings per share in the range of $2.13–$2.27. The Zacks Consensus Estimate for 2017 earnings is currently pegged at $2.43 per share.
Net sales are expected between $1.64 billion and $1.68 billion.
Adjusted EBITDA is now projected in the range of $360 million to $375 million.
B&G Foods currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Mondelez International, Inc. MDLZ reported fourth-quarter 2016 results, wherein earnings and revenues missed the Zacks Consensus Estimate. The underperformance was mainly due to a stronger dollar that impacted sales outside the U.S.
The Hershey Company’s HSY fourth-quarter 2016 earnings beat the Zacks Consensus Estimate while sales missed the same. Earnings benefited from higher sales in North America. Hershey’s fourth-quarter adjusted earnings per share of $1.17 also beat the year-ago profit of $1.08 by 8.3%.
J&J Snack Foods Corp. JJSF, a leading snack food provider, reported first-quarter fiscal 2017 earnings of 72 cents per share, surpassing the Zacks Consensus Estimate of 64 cents by 12.5%.
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