B&G Foods Earnings Preview

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B&G Foods (NYS: BGS) only managed to meet estimates last quarter, but investors hope that it will surpass expectations this quarter. The company will unveil its latest earnings on Thursday, Feb. 16. B&G Foods manufactures, sells, and distributes a diverse portfolio of branded and shelf-stable food products.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on B&G Foods with analysts unanimously rating it hold. Analysts don't like B&G Foods as much as competitor Hain Celestial Group overall. Seven out of 10 analysts rate Hain Celestial Group a buy compared to zero of four for B&G Foods. That rating hasn't budged in three months as analysts have remained steady in their opinion of the stock.
  • Revenue Forecasts: On average, analysts predict $151.9 million in revenue this quarter. That would represent a rise of 7.1% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.31 per share. Estimates range from $0.29 to $0.33.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 97.5% assigning it an "outperform" rating. Most of the community agrees with the All-Stars, with 96.9% granting it a rating of "outperform." Fools are bullish on B&G Foods, though the message boards have been quiet lately with only 72 posts in the past 30 days. Even with a robust four out of five stars, B&G Foods' CAPS rating falls a little short of the community's upbeat outlook.

Management:
B&G Foods' profit has risen year-over-year by an average of 1256.7% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. The company's net margins have been increasing year-over-year for the last four quarters. Net margins reflect what percentage of revenue becomes profit. Here is how B&G Foods has been doing for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

31.2%

32.6%

34.1%

33.2%

Operating Margin

20.4%

20.3%

22.1%

20.4%

Net Margin

9.1%

9.7%

10.1%

10.1%

One final thing: If you want to keep tabs on B&G Foods movements, and for more analysis on the company, make sure you add it to your Watchlist.

At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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