What happened

Shares of B&G Foods Inc. (NYSE:BGS) were up 10.9% as of 11:50 a.m. EDT Wednesday after the company announced strong third-quarter 2017 results.

More specifically, B&G Foods' quarterly revenue climbed 28.3% year over year to $408.4 million, which translated to a 0.1% decline in adjusted net income to $36.8 million. Adjusted net income per diluted share fell 1.8% to $0.55.

Analysts, on average, were expecting lower adjusted net income of $0.47 per share on revenue of $390.9 million.

Food packages including Green giant vegetables, Cream of Wheat, Pirate's Booty, and Ortega owned by B&G Foods


So what

B&G's top-line growth was primarily driven by the acquisitions of its spices & seasonings business and the Victoria brand in late 2016. Excluding those acquisitions -- both of which are tracking ahead of the company's original projections for sales -- B&G's base business net sales still climbed 3.2% year over year to $328.3 million, in spite of what CEO Robert Cantwell described as a "challenging backdrop in the packaged foods industry."

Cantwell elaborated that Green Giant frozen products delivered double-digit percent growth for the second straight quarter, while Pirate Brands products rebounded nicely with 21% net sales growth. B&G also enjoyed relative strength from smaller brands including Polaner, Underwood, Cream of Wheat, and New York Style.

Now what

Looking forward, B&G also increased its full-year 2017 guidance to call for revenue of $1.660 billion to $1.685 billion (up from $1.64 billion to $1.67 billion) partly thanks to $17.5 million in expected net sales from its more recent acquisition of Back to Nature. B&G reiterated its outlook for 2017 adjusted EBITDA as in the range of $352.5 million to $367.5 million, and for adjusted earnings per share of $2.03 to $2.17.

All things considered, B&G Foods' results weren't exactly jaw-dropping. But it was a strong quarter highlighted not only by modest organic gains, but also the validation of the company's pursuit of acquisitive growth.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.