B&G Foods (NYSE:BGS) Issues Earnings Results

B&G Foods (NYSE:BGS) posted its earnings results on Tuesday. The company reported $0.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07, FiscalAI reports. B&G Foods had a positive return on equity of 10.74% and a negative net margin of 4.00%. The company had revenue of $459.78 million for the quarter, compared to analysts’ expectations of $435.00 million.

Here are the key takeaways from B&G Foods’ conference call:

• Sales and adjusted EBITDA strengthened: Third-quarter net sales rose 4.7% and base-business sales increased 5%, primarily on higher volume; adjusted EBITDA climbed to $81.8 million from $70.4 million a year earlier. Management raised full-year net sales guidance to $1.76 billion–$1.80 billion and adjusted EBITDA guidance to $280 million–$290 million, while reaffirming adjusted EPS guidance.
• Growth is coming from both core brands and alternative channels. B&G cited gains in private label, food service, club and institutional sales, alongside improving branded retail performance; management says it is targeting sustainable business that uses existing manufacturing capacity, rather than relying only on episodic opportunities.
• Debt and interest costs remain a significant burden. Covenant leverage was just over 6.4 times at quarter-end, and management aims to get below 6 times by mid-2027 and below 5.5 times over time. Quarterly net interest expense increased $7.5 million to $44.8 million, partly reflecting acquisition-related borrowing and 11% notes.
• The company reported a larger GAAP net loss despite stronger adjusted results. Third-quarter net loss was $32.5 million, including a $40.7 million non-cash impairment charge tied to the B&M and Joan of Arc divestiture; adjusted net income was $17.8 million.
• Input-cost pressure is weighing on parts of the business. Higher soybean and canola oil costs and rising transportation and logistics expenses contributed to lower Specialty segment adjusted EBITDA; management identified diesel, freight and soybean oil as key cost pressures, though it said some costs had recently eased.

B&G Foods Price Performance

Shares of NYSE:BGS traded up $0.01 during trading on Tuesday, reaching $2.67. The company had a trading volume of 2,541,437 shares, compared to its average volume of 2,134,065. The firm’s fifty day moving average is $2.72 and its 200 day moving average is $4.03. The company has a debt-to-equity ratio of 5.08, a quick ratio of 1.09 and a current ratio of 1.62. The firm has a market capitalization of $216.61 million, a PE ratio of -2.99 and a beta of 0.56. B&G Foods has a twelve month low of $1.99 and a twelve month high of $6.38.

B&G Foods Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, January 26th. Stockholders of record on Thursday, December 31st will be paid a $0.0950 dividend. This represents a $0.38 dividend on an annualized basis and a dividend yield of 14.3%. The ex-dividend date of this dividend is Thursday, December 31st. B&G Foods’s dividend payout ratio is currently -42.70%.

Analyst Upgrades and Downgrades

BGS has been the topic of several recent research reports. Evercore set a $4.50 price objective on shares of B&G Foods in a research report on Wednesday, August 12th. TD Cowen dropped their price target on shares of B&G Foods from $4.00 to $3.00 and set a “sell” rating on the stock in a research note on Wednesday, August 12th. Barclays cut their price target on B&G Foods from $4.50 to $3.00 and set an “equal weight” rating on the stock in a report on Friday, October 16th. Weiss Ratings downgraded B&G Foods from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, October 8th. Finally, Jefferies Financial Group set a $4.00 price objective on B&G Foods in a research report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Sell” and a consensus price target of $3.62.

B&G Foods Company Profile

B&G Foods, Inc. is a branded food company headquartered in Parsippany, New Jersey. The company manufactures, sells and distributes a portfolio of shelf-stable, frozen and specialty food products through grocery stores, mass merchandisers, club stores, foodservice distributors and e-commerce channels. Its products include vegetables, beans, pickles, condiments, sauces, spices, seasonings, baking products, hot cereals, snacks and frozen foods. B&G Foods’ brand portfolio has included Ortega Mexican foods, Cream of Wheat, Mrs. Dash, Maple Grove Farms, Polaner, Cary’s, Las Palmas, Underwood and B&G pickles, among other consumer food brands.