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Is Disappointment in Store for B&G Foods (BGS) in Q1 Earnings?

Zacks Equity Research

B&G Foods, Inc. BGS is scheduled to release first-quarter 2019 results on May 2. This frozen foods producer’s earnings lagged the Zacks Consensus Estimate by average of 9.9% in the trailing four quarters.

Let’s see how things are placed ahead of the upcoming quarterly results.

B&G Foods, Inc. Price and EPS Surprise

B&G Foods, Inc. Price and EPS Surprise | B&G Foods, Inc. Quote

What to Expect

The Zacks Consensus Estimate has remained stable in the past 30 days at 51 cents, which indicates a 7.3% decline from the year-ago quarter’s reported figure. Further, the consensus mark for revenues is $409 million compared with $432 million reported in the year-ago period.

Factors Impacting Results

B&G Foods is persistently being affected by increased input and freight expenses. Also, the company expects freight costs to remain a headwind in 2019. This is likely to keep margins under pressure in the quarter to be reported as well. Also, high debt load is a concern, as the company is likely to incur high interest charges.

Apart from this, Pirate Brands’ divestiture is likely to weigh on volumes. However, the McCann’s buyout should provide some cushion to the stock. In fact, we expect B&G Foods’ net sales to be driven by Green Giant, which in turn has been benefiting from increased sales of frozen and shelf-stable products. Also, efficient pricing strategy should serve as a tailwind to B&G Foods in the quarter under review.

What the Zacks Model Unveils

Our proven model does not suggest that B&G Foods is likely to beat bottom-line estimates this quarter.  For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

B&G Foods has an Earnings ESP of 0.00% and Zacks Rank #5 (Strong Sell). Notably, we caution against Zacks Rank #4 (Sell) or 5 stocks going into earnings announcement.   

Stocks Poised to Beat Earnings Estimates

Estee Lauder EL has an Earnings ESP of +0.77% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Church & Dwight CHD has an Earnings ESP of +1.06% and a Zacks Rank #2.

Inter Parfums IPAR has an Earnings ESP of +0.30% and a Zacks Rank #2.

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