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B&G Foods' (BGS) Q2 Earnings in the Cards: Factors to Watch
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B&G Foods, Inc. (BGS - Free Report) is likely to register a top and bottom-line decline when it reports second-quarter 2024 earnings on Aug 6. The Zacks Consensus Estimate for revenues is pegged at $433.6 million, which indicates a 7.7% decrease from the year-ago period.
The consensus mark for earnings has declined by a penny in the past 30 days to 8 cents per share, which suggests a fall of 46.7% from the year-ago quarter’s figure. BGS has a trailing four-quarter earnings surprise of 20.3%, on average.
Factors to Note
The overall food industry has been grappling with category-wide challenges. Being no exception to this pressure, B&G Foods has been witnessing soft sales for the past few quarters. In the first quarter of fiscal 2024, the top and bottom lines declined year over year. The sales decline was due to foodservice trends and increased promotion spending. Softness in the foodservice and industrial businesses is stemming from an overall slowdown in out-of-home traffic and volumes.
B&G Foods has been encountering emerging challenges in foodservice and experiencing a slower recovery in net sales to retail customers, with anticipation for improvement only in the second half of this year. This raises concerns for the company’s second-quarter sales performance. Apart from this, high SG&A expenses are a concern.
However, the company is likely to have gained from its strong brand portfolio, driven by acquisitions and innovation.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for B&G Foods this time. 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, which is not the case here.
B&G Foods currently carries a Zacks Rank #4 (Sell), and it has an Earnings ESP of -4.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:
The company is likely to register a decline in the top line and an increase in the bottom line when it reports second-quarter 2024 numbers. The Zacks Consensus Estimate for International Flavors’ quarterly revenues is pegged at $2.8 billion, which indicates a decline of 3.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for International Flavors’ quarterly earnings of $1.01 suggests an increase of 17.4% from the year-ago quarter’s levels. IFF has a trailing four-quarter earnings surprise of 6.5%, on average.
Vital Farms (VITL - Free Report) has an Earnings ESP of +1.18% and currently sports a Zacks Rank #1. VITL is anticipated to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for VITL’s quarterly revenues is pegged at $143.8 million, which calls for growth of 35% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Vital Farms’ earnings has moved down by a penny in the past 30 days to 21 cents per share. The consensus estimate suggests 40% growth from the prior-year quarter’s reported figure. VITL delivered an earnings surprise of 102.1%, on average, in the trailing four quarters.
Coty (COTY - Free Report) has an Earnings ESP of +22.73% and a Zacks Rank of 3 at present. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY’s quarterly earnings has remained unchanged in the past 30 days at 5 cents per share. The consensus mark for earnings indicates a 400% surge from the figure reported in the year-ago quarter.
The consensus estimate for quarterly revenues is pegged at $1.38 billion, which suggests a rise of 1.8% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 22.2%.
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B&G Foods' (BGS) Q2 Earnings in the Cards: Factors to Watch
B&G Foods, Inc. (BGS - Free Report) is likely to register a top and bottom-line decline when it reports second-quarter 2024 earnings on Aug 6. The Zacks Consensus Estimate for revenues is pegged at $433.6 million, which indicates a 7.7% decrease from the year-ago period.
The consensus mark for earnings has declined by a penny in the past 30 days to 8 cents per share, which suggests a fall of 46.7% from the year-ago quarter’s figure. BGS has a trailing four-quarter earnings surprise of 20.3%, on average.
Factors to Note
The overall food industry has been grappling with category-wide challenges. Being no exception to this pressure, B&G Foods has been witnessing soft sales for the past few quarters. In the first quarter of fiscal 2024, the top and bottom lines declined year over year. The sales decline was due to foodservice trends and increased promotion spending. Softness in the foodservice and industrial businesses is stemming from an overall slowdown in out-of-home traffic and volumes.
B&G Foods has been encountering emerging challenges in foodservice and experiencing a slower recovery in net sales to retail customers, with anticipation for improvement only in the second half of this year. This raises concerns for the company’s second-quarter sales performance. Apart from this, high SG&A expenses are a concern.
B&G Foods, Inc. Price, Consensus and EPS Surprise
B&G Foods, Inc. price-consensus-eps-surprise-chart | B&G Foods, Inc. Quote
However, the company is likely to have gained from its strong brand portfolio, driven by acquisitions and innovation.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for B&G Foods this time. 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, which is not the case here.
B&G Foods currently carries a Zacks Rank #4 (Sell), and it has an Earnings ESP of -4.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:
International Flavors & Fragrances Inc. (IFF - Free Report) currently has an Earnings ESP of +8.84% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register a decline in the top line and an increase in the bottom line when it reports second-quarter 2024 numbers. The Zacks Consensus Estimate for International Flavors’ quarterly revenues is pegged at $2.8 billion, which indicates a decline of 3.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for International Flavors’ quarterly earnings of $1.01 suggests an increase of 17.4% from the year-ago quarter’s levels. IFF has a trailing four-quarter earnings surprise of 6.5%, on average.
Vital Farms (VITL - Free Report) has an Earnings ESP of +1.18% and currently sports a Zacks Rank #1. VITL is anticipated to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for VITL’s quarterly revenues is pegged at $143.8 million, which calls for growth of 35% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Vital Farms’ earnings has moved down by a penny in the past 30 days to 21 cents per share. The consensus estimate suggests 40% growth from the prior-year quarter’s reported figure. VITL delivered an earnings surprise of 102.1%, on average, in the trailing four quarters.
Coty (COTY - Free Report) has an Earnings ESP of +22.73% and a Zacks Rank of 3 at present. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY’s quarterly earnings has remained unchanged in the past 30 days at 5 cents per share. The consensus mark for earnings indicates a 400% surge from the figure reported in the year-ago quarter.
The consensus estimate for quarterly revenues is pegged at $1.38 billion, which suggests a rise of 1.8% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 22.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.