B&G Foods (BGS) Ready to Report First Quarter Results: What to Expect?

B&G Foods, Inc. BGS is expected to see a decline in revenue and net income when it reports its first quarter 2024 results on May 8 after the closing bell. The Zacks Consensus Estimate for revenue is pegged at $484.7 million, suggesting a 5.3% decline from the year-ago quarter’s reported figure.

The consensus for quarterly earnings has remained unchanged over the past 30 days at 20 cents per share. This indicates a decrease of 25.9% compared to the figure reported for the year-ago quarter. However, BGS has posted earnings surprises over the last four quarters averaging 23.8%.

Factors to note

The food industry as a whole is grappling with category-wide challenges. Not escaping this pressure, B&G Foods has experienced sluggish sales for several quarters. During the fourth quarter earnings conference call, management emphasized that it continues to operate in a highly volatile environment. Continued disruptions in crucial areas of the canal have had significant impacts on the global supply chain. Despite the company’s relatively streamlined operational position compared to many of its peers, it continues to be impacted by these challenges.

Management’s sales forecast for fiscal 2024 suggests a year-over-year decline, raising concerns for the quarter under review. Additionally, any continued high general and administrative expenses and consumer marketing costs could impact the company’s profits.

B&G Foods, Inc. Price, consensus and EPS surprise

B&G Foods, Inc. price-consensus-eps-surprise-chart | B&G Foods, Inc. Quote

However, B&G Foods’ strategy of refining its portfolio through significant divestitures and acquisitions has worked well. Additionally, the company has benefited from a focus on relevant innovation, such as the recent introduction of new licensed seasoning and grilling blends under the Buffalo Trace, Fireball and Southern Comfort brands. These new offerings have seen exceptional performance in initial distribution channels.

What the Zacks Model Reveals

Our proven model does not conclusively predict that B&G Foods’ profits will be higher 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 a higher Earnings Outcome, which is not the case here.

B&G Foods has an Earnings ESP of 0.00% and currently carries a Zacks Rank #3. You can discover the best stocks to buy or sell before they’re released with our Earnings ESP filter.

Actions with the favorable combination

Here are three companies worth considering because our model shows they have the right mix to improve earnings this time around:

Ollie’s Bargain Outlet Holdings, Inc. OLLI currently has an Earnings ESP of +0.77% and a Zacks Rank of 3. The company is likely to see increases in its revenue and net income when it reports Q1 numbers for the year. ‘fiscal year 2024. The Zacks Consensus Estimate for Ollie’s Bargain’s quarterly earnings is pegged at $503.8 million, indicating growth of 9.7% from the figure reported in the prior-year quarter . You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ollie’s Bargain’s quarterly earnings of 65 cents suggests an increase of 32.7% from year-ago quarter levels. OLLI has a four-quarter earnings surprise of 7.3% on average.

International Flavors and Fragrances Inc. IFF currently has an Earnings ESP of +15.59% and a Zacks Rank of 3. The company is likely to see a decline in its revenue and net income when it reports Q1 2024 numbers. The Zacks Consensus Estimate for International Flavors’ quarterly revenue is pegged at $2.8 billion, implying a decline of 7.3% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for International Flavors’ quarterly earnings of 84 cents suggests a decline of 3.5% from year-ago quarter levels. OLLI reported four-quarter negative earnings surprises averaging 2.7%.

Dollar General DG currently has an Earnings ESP of +1.88% and a Zacks Rank #3. The company is expected to report top-line growth when it reports its first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for DG’s quarterly revenue is pegged at $9.86 billion, which which implies an increase of 5.6% compared to the reported figure of the previous year’s quarter.

The Zacks Consensus Estimate for DG’s quarterly earnings remained unchanged at $1.57 over the past 30 days, implying a decline of 32.9% from the year-ago quarter’s reported figure. . Dollar General reported negative earnings surprises over four quarters, averaging 1.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click to get this free report