B&G Foods (NYSE:BGS) Announces Quarterly Earnings Results

B&G Foods (NYSE:BGS) issued its quarterly earnings data on Tuesday. The company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.15 by $0.06, FiscalAI reports. B&G Foods had a positive return on equity of 13.02% and a negative net margin of 4.70%. The business had revenue of $459.78 million for the quarter, compared to analysts’ expectations of $435.00 million. During the same period last year, the business earned $0.15 EPS. The business’s revenue was up 4.7% on a year-over-year basis.

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 Trading Up 4.3%

Shares of BGS stock opened at $3.50 on Friday. The company has a quick ratio of 1.09, a current ratio of 2.84 and a debt-to-equity ratio of 5.74. The firm has a market cap of $283.58 million, a P/E ratio of 5.32 and a beta of 0.56. The company has a 50 day moving average of $2.71 and a 200-day moving average of $4.01. B&G Foods has a 12-month low of $1.99 and a 12-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 dividend of $0.0950 per share. The ex-dividend date is Thursday, December 31st. This represents a $0.38 annualized dividend and a dividend yield of 10.9%. B&G Foods’s dividend payout ratio (DPR) is presently -36.19%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on BGS shares. Weiss Ratings raised B&G Foods from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday. Wall Street Zen raised B&G Foods from a “hold” rating to a “buy” rating in a research report on Saturday. Barclays dropped 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. TD Cowen cut their price objective on B&G Foods from $4.00 to $3.00 and set a “sell” rating on the stock in a research report on Wednesday, August 12th. Finally, Jefferies Financial Group set a $4.00 price objective on B&G Foods in a research note on Wednesday, July 22nd. One investment analyst has rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Sell” and an average price target of $3.62.

About B&G Foods

B&G Foods, Inc. is a packaged-foods company that manufactures, markets and distributes branded shelf-stable and frozen foods. Its products include vegetables, Mexican foods, hot cereals, spices, seasonings, sauces, baking ingredients and other grocery staples. The company’s brands include Green Giant shelf-stable vegetables, Ortega, Cream of Wheat, Maple Grove Farms and Mrs. Dash. B&G Foods sells its products primarily in the United States, Canada and Puerto Rico through grocery retailers and other channels.