B&G Foods Drops Over 6% On 4Q Earnings Miss


Shares of B&G Foods fell 6.3% in Tuesday’s extended trading session after the food company reported lower-than-expected 4Q results.

B&G Foods’ (BGS) 4Q adjusted earnings of $0.35 per share missed Street estimates by $0.10. Revenues of $510.2 million also came in significantly lower than the consensus estimate of $533.5 million.

Nonetheless, the company’s top and bottom lines marked year-over-year improvements of 8.5% and 25%, respectively. The year-over-year growth reflects benefits from COVID-19 pandemic-led demand for its products, the Crisco acquisition, and an extra reporting week during the quarter.

For fiscal 2021, B&G expects revenues to be between $2.05 billion and $2.10 billion. Analysts are expecting the company to generate revenues of $2.05 billion. (See B&G Foods stock analysis on TipRanks).

Additionally, the company announced that its board of directors has approved a regular quarterly dividend of $0.475 per share to be payable on April 30 to shareholders of record as of March 31. At the stock’s most recent closing price of $30.40, the newly declared dividend represents a dividend yield of 6.3%.

Following the earnings release, Jefferies analyst Robert Dickerson trimmed the stock’s price target to $25 (18% downside potential) from $30 and reiterated a Hold rating. In a note to investors, Dickerson wrote, “We remain sidelined given base business growth potential in a more normalized consumption state and near-term margin pressure off cost inflation risk relative to pricing potential.”

The Street has a cautious outlook on the stock with a Hold consensus rating based on 3 Holds and 1 Sell. The average analyst price target of $27.25 implies downside potential of about 10% to current levels. Shares have gained about 89 % over the last year.

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