B&G Foods, Inc. (NYSE:BGS) Just Reported And Analysts Have Been Lifting Their Price Targets
Shareholders will be ecstatic, with their stake up 22% over the past week following B&G Foods, Inc.'s (NYSE:BGS) latest yearly results. Revenues were in line with expectations, at US$2.1b, while statutory losses ballooned to US$0.89 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for B&G Foods
Following the recent earnings report, the consensus from six analysts covering B&G Foods is for revenues of US$1.97b in 2024. This implies a measurable 4.6% decline in revenue compared to the last 12 months. Earnings are expected to improve, with B&G Foods forecast to report a statutory profit of US$0.49 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.99b and earnings per share (EPS) of US$0.74 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 6.0% to US$10.14, suggesting the revised estimates are not indicative of a weaker long-term future for the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on B&G Foods, with the most bullish analyst valuing it at US$12.00 and the most bearish at US$8.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the B&G Foods' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.6% by the end of 2024. This indicates a significant reduction from annual growth of 5.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.6% annually for the foreseeable future. It's pretty clear that B&G Foods' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for B&G Foods. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that B&G Foods' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on B&G Foods. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for B&G Foods going out to 2025, and you can see them free on our platform here..
It is also worth noting that we have found 3 warning signs for B&G Foods (1 is significant!) that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
