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Here's How B&G Foods (BGS) Looks Just Ahead of Q2 Earnings

Zacks Equity Research
·4 min read

B&G Foods, Inc. BGS is slated to release second-quarter 2020 results on Jul 30. This frozen food products provider delivered an earnings surprise of about 7% in the last reported quarter. Further, B&G Foods has a trailing four-quarter earnings surprise of 5.4%, on average. 

The Zacks Consensus Estimate for second-quarter earnings has gone up 8.5% to 64 cents per share over the past 30 days. This suggests an increase of 68.4% from the figure reported in the year-ago period. The consensus mark for revenues stands at $511 million, indicating a rise of 37.7% from the year-ago period’s reported figure.

BG Foods, Inc. Price and EPS Surprise

BG Foods, Inc. Price and EPS Surprise
BG Foods, Inc. Price and EPS Surprise

BG Foods, Inc. price-eps-surprise | BG Foods, Inc. Quote

Key Factors to Note

B&G Foods has been benefiting from consumers’ rising demand amid the coronavirus-led stockpiling. In its first-quarter earnings call, management stated that the company has been witnessing a rapid increase in demand for its products since the second half of March 2020, thanks to the coronavirus-led stockpiling and higher at-home consumption. Moreover, this trend continued in April as net sales during the month increased 60% year over year. The burgeoning demand trend continued till May beginning. These upsides are likely to get reflected in the upcoming quarterly results.

Apart from this, B&G Foods has been gaining from its buyouts, which have bolstered its brand portfolio. To this end, the buyout of Clabber Girl (in May 2019) has been yielding results. Also, Green Giants has emerged as one of the leading brands of the company and is expected to remain strong in 2020, courtesy of its range of innovation across frozen food categories outside frozen vegetables. These factors are likely to have favorably contributed to the company’s second-quarter performance.

However, in its last earnings call, management had said that it expects challenges in the food service business amid the pandemic-led stay-at-home trends. Also, the company expects elevated costs throughout 2020 due to efforts to operate amid coronavirus, though they are likely to be largely countered by higher sales and enhanced utilization. Further, the company’s pricing initiatives and saving efforts are noteworthy.

What the Zacks Model Unveils

Our proven model predicts 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

B&G Foods currently has a Zacks Rank #2 and an Earnings ESP of +1.56%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With Favorable Combinations

Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.

Nu Skin NUS has an Earnings ESP of +6.35% and a Zacks Rank #1.

Flowers Foods FLO has an Earnings ESP of +9.41% and a Zacks Rank #2.

Clorox CLX has an Earnings ESP of +0.59% and a Zacks Rank #2.

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The Clorox Company (CLX) : Free Stock Analysis Report
 
Nu Skin Enterprises, Inc. (NUS) : Free Stock Analysis Report
 
BG Foods, Inc. (BGS) : Free Stock Analysis Report
 
Flowers Foods, Inc. (FLO) : Free Stock Analysis Report
 
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