B&G Foods, Inc. BGS is likely to witness a top-line decline when it reports fourth-quarter 2024 earnings on Feb. 25. The Zacks Consensus Estimate for revenues is pegged at $546.65 million, indicating a 5.5% drop from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged in the past 30 days at 31 cents per share, which suggests a 3.3% increase from the figure reported in the year-ago quarter. BGS has a trailing four-quarter negative earnings surprise of 9.5%, on average.
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B&G Foods, Inc. Price, Consensus and EPS Surprise
B&G Foods, Inc. price-consensus-eps-surprise-chart | B&G Foods, Inc. Quote
BGS: Key Factors to Watch
B&G Foods has been witnessing soft sales for the past few quarters due to macroeconomic headwinds, such as food inflation and shifts in consumer spending patterns. These industry-wide challenges have been weighing on demand in both retail and foodservice channels.
B&G Foods revised its 2024 outlook downward on its third-quarterearnings call indicating a slower-than-expected recovery in center store trends and the broader consumer environment. The company anticipates stabilization only in fiscal 2025, which signals concerns for the fourth quarter.
Input cost inflation is also a concern. However, B&G Foods’ focus on innovation across several key categories has been working well. The company’s Spices & Flavor Solutions unit has been performing well, demonstrating its ability to capture consumer demand in an otherwise challenging environment. With Spices and Flavor Solutions being BGS’ highest-margin segment, continued momentum here bodes well.
Earnings Whispers for BGS Stock
Our proven model doesn’t conclusively predict an earnings beat for B&G Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
B&G Foods carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Costco Wholesale COST currently has an Earnings ESP of +0.14% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $63.2 billion, which suggests 8.2% growth from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Costco’s quarterly earnings per share is pegged at $4.09, indicating a 10.2% increase from the year-ago period. COST has a trailing four-quarter earnings surprise of 2%, on average.
Urban Outfitters URBN currently has an Earnings ESP of +11.94% and a Zacks Rank of 2. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.63 billion, which indicates growth of 9.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Urban Outfitters’ fourth-quarter fiscal 2025 EPS is pegged at 89 cents, which implies an almost 29% increase year over year. URBN has a trailing four-quarter earnings surprise of 22.8%, on average.
Sprouts Farmers Market SFM currently has an Earnings ESP of +5.63% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Sprouts Farmers’ quarterly revenues is pegged at $1.95 billion, which suggests an increase of 15% from the prior-year quarter.
The Zacks Consensus Estimate for Sprouts Farmers’ quarterly earnings per share is pegged at 73 cents, indicating nearly 49% growth from the year-ago period. SFM has a trailing four-quarter earnings surprise of 15.3%, on average.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
B&G Foods, Inc. (BGS) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
