B&G Foods Earnings: Here’s Why Investors are Not Happy Now
B&G Foods Inc. (NYSE:BGS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.92%.
B&G Foods Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 0% to $ 0.33 in the quarter versus EPS of $0.33 in the year-earlier quarter.
Revenue: Rose 8.27% to $160.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: B&G Foods Inc. reported adjusted EPS income of $0.33 per share. By that measure, the company missed the mean analyst estimate of $0.35. It missed the average revenue estimate of $162.3 million.
Quoting Management: Commenting on the results, David L. Wenner, President and Chief Executive Officer of B&G Foods, stated, “The second quarter was a very successful quarter for B&G Foods. In May we completed the acquisition of the TrueNorth brand and in June we entered into an agreement to buy Pirate Brands, a leader in the all-natural snack foods category. During the second quarter we also issued $700 million of senior notes at the very favorable interest rate of 4.625% and early in the third quarter increased our revolver capacity by $100.0 million. We used the proceeds from the refinancing to retire our 7.625% senior notes, repay our tranche B term loans and to fund the Pirate Brands acquisition, which closed early in the third quarter. We believe that by improving our debt profile, we are in a very strong position to continue to pursue accretive acquisitions.”
Key Stats (on next page)…