Q3 Packaged Food Earnings Review: First Prize Goes to B&G Foods (NYSE:BGS)
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the packaged food stocks, including B&G Foods (NYSE:BGS) and its peers.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods, prepared meals, or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences.The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 30 packaged food stocks we track reported a slower Q3; on average, revenues missed analyst consensus estimates by 2.2% while next quarter's revenue guidance was 10.9% below consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but packaged food stocks held their ground better than others, with the share prices up 12.3% on average since the previous earnings results.
Best Q3: B&G Foods (NYSE:BGS)
Started as a small grocery store in New York City, B&G Foods (NYSE:BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.
B&G Foods reported revenues of $502.7 million, down 4.9% year on year, falling short of analyst expectations by 0.5%. It was an ok quarter for the company, with optimistic earnings guidance for the full year but full-year revenue guidance missing analysts' expectations.
The stock is up 23.3% since the results and currently trades at $10.74.
Is now the time to buy B&G Foods? Access our full analysis of the earnings results here, it's free.
Lamb Weston (NYSE:LW)
Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.73 billion, up 35.7% year on year, outperforming analyst expectations by 1.9%. It was a good quarter for the company, with a decent beat of analysts' revenue growth estimates.
Lamb Weston delivered the fastest revenue growth among its peers. The stock is up 2.4% since the results and currently trades at $107.41.
Is now the time to buy Lamb Weston? Access our full analysis of the earnings results here, it's free.
Slowest Q3: Cal-Maine (NASDAQ:CALM)
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.
Cal-Maine reported revenues of $523.2 million, down 34.7% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with a miss of analysts' operating margin estimates.
Cal-Maine had the slowest revenue growth in the group. The stock is up 0.4% since the results and currently trades at $55.11.
Read our full analysis of Cal-Maine's results here.
Vital Farms (NASDAQ:VITL)
With an emphasis on ethically produced products, Vital Farms (NASDAQ:NATR) specializes in pasture-raised eggs and butter.
Vital Farms reported revenues of $110.4 million, up 20% year on year, in line with analyst expectations. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 33.7% since the results and currently trades at $15.2.
Read our full, actionable report on Vital Farms here, it's free.
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The author has no position in any of the stocks mentioned
