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B&G Foods (BGS) Queued Up for Q3 Earnings: Key Aspects to Note

B&G Foods' (BGS) third-quarter performance is likely to have been affected by higher input costs, such as raw materials and transportation.

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This story originally appeared on Zacks

B&G Foods, Inc. BGS is likely to register both top- and the bottom-line decline when it reports third-quarter 2021 numbers on Nov 4, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $494.7 million, suggesting a decrease of 0.2% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings is currently pegged at 56 cents per share, indicating a slump of 24.3% from the year-ago quarter’s reported figure. The consensus mark has moved six cents south over the past 30 days. In the last reported quarter, B&G Foods posted a negative earnings surprise of 12.7%.

- Zacks

Factors Likely to Impact Q3 Results

B&G Foods has been battling cost inflation for a while now. On its last earnings call, management had highlighted that the company expects to keep seeing significant inflationary trends in ingredients, packaging and transportation.

It has also been grappling with pandemic-induced rise in costs at its production facilities for a while. These costs mainly include temporarily enhanced compensation for the manufacturing employees, remuneration paid to employees while in quarantine as well as expenses associated with other precautionary health and safety measures. Continuation of such expenses is likely to have been a drag on the company’s performance during the third quarter.

The company is focused on undertaking cost-cutting measures coupled with revenue-driving actions across its brands. B&G Foods is also benefiting from higher online sales, especially amid the pandemic. Such upsides are likely to have provided some cushion to the company’s performance during the quarter in review.

B&G Foods, Inc. Price, Consensus and EPS Surprise B&G Foods, Inc. Price, Consensus and EPS Surprise

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

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for B&G Foods 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 an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

B&G Foods currently has a Zacks Rank #4 (Sell) and an Earnings ESP of -4.79%.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

The Estee Lauder Companies Inc. EL currently has an Earnings ESP of +0.38% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corteva, Inc. CTVA currently has an Earnings ESP of +7.89% and a Zacks Rank of 3.

Tyson Foods, Inc. TSN currently has an Earnings ESP of +19.13% and is Zacks #3 Ranked.



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