B&G Foods Ready to Report Q1 Earnings: What to Expect?

B&G Foods, Inc. BGS is likely to see a top and bottom-line decline when it reports first-quarter 2024 earnings on May 8 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $484.7 million, which suggests a drop of 5.3% from the prior-year quarter's reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 20 cents per share. This indicates a decrease of 25.9% from the year-ago quarter's reported figure. However, BGS has a trailing four-quarter earnings surprise of 23.8%, on average.

Factors to Note

The overall food industry has been grappling with category-wide challenges. Being no exception to this pressure, B&G Foods has been witnessing soft sales for the past few quarters. On its fourth-quarter earnings call, management highlighted that it continues to operate in a highly volatile landscape. Ongoing disruptions in crucial canal zones have had significant impacts on the global supply chain. Despite the company's relatively streamlined operational position compared to many of its counterparts, it continues to be impacted by these challenges.
Management's sales guidance for fiscal 2024 suggests a year-over-year decline, raising concerns for the quarter under review. Also, any persistence of elevated general and administrative expenses and consumer marketing costs may have impacted the company's profits. 

However, B&G Foods' strategy of refining its portfolio through meaningful divestitures and acquisitions has been working well. Also, the company has been benefiting from its focus on undertaking relevant innovation, like the recent introductions of new license seasoning and grilling blends under the Buffalo Trace, Fireball and Southern Comfort brands. These new offerings have been performing exceptionally well in initial distribution channels.

What the Zacks Model Unveils

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 has an Earnings ESP of 0.00%, and it currently carries a Zacks Rank #3.

Stocks With the Favorable Combination

Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:
Ollie's Bargain Outlet Holdings, Inc. OLLI currently has an Earnings ESP of +0.77% and a Zacks Rank of 3. The company is likely to register top and bottom-line increases when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Ollie's Bargain's quarterly revenues is pegged at $503.8 million, which indicates growth of 9.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ollie's Bargain's quarterly earnings of 65 cents suggests a rise of 32.7% from the year-ago quarter's levels. OLLI has a trailing four-quarter earnings surprise of 7.3%, on average.
International Flavors & Fragrances Inc. IFF currently has an Earnings ESP of +15.59% and a Zacks Rank of 3. The company is likely to register a top and bottom-line decline when it reports first-quarter 2024 numbers. The Zacks Consensus Estimate for International Flavors' quarterly revenues is pegged at $2.8 billion, which implies a decrease of 7.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for International Flavors' quarterly earnings of 84 cents suggests a drop of 3.5% from the year-ago quarter's levels. OLLI has a trailing four-quarter negative earnings surprise of 2.7%, on average.
Dollar General DG currently has an Earnings ESP of +1.88% and a Zacks Rank #3. The company is expected to register top-line growth when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for DG's quarterly revenues is pegged at $9.86 billion, which implies a rise of 5.6% from the prior-year quarter's reported figure.
The Zacks Consensus Estimate for DG's quarterly earnings has been unchanged at $1.57 in the past 30 days, which calls for a 32.9% decline from the year-ago quarter's reported number. Dollar General has a trailing four-quarter negative earnings surprise of 1.3%, on average.
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