Please ensure Javascript is enabled for purposes of website accessibility

Why B&G Foods, Inc. Stock Soared Today

By Jeremy Bowman - Apr 29, 2016 at 1:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The packaged-foods maker jumped on strong profits in the first quarter.


Image source: Green Giant.

What: Shares of B&G Foods (BGS -1.85%) were flying higher today, up 19.3% as of 11:59 a.m. ET, after delivering a strong earnings report.

So what: The packaged-food maker crushed earnings estimates, posting a per-share profit of $0.65 against expectations of $0.51. Revenue jumped 62.6% with the help of recent acquisitions of Mama Mary's and Green Giant brands to $353 million, but that was short of the consensus at $360 million. Comparable sales of the base business were actually down 2%, but investors were impressed with the strong profit growth nonetheless as B&G continues to drive greater efficiencies. CEO Robert Cantwell said the Green Giant acquisition was turning out to be more profitable than the company had expected and that its innovation pipeline was growing. "We are more excited than ever about bringing Green Giant back to prominence and I believe we have the plan and the team to make that happen," he added.

Now what: With the acquisition of Green Giant and a 62% increase in revenue, the company is considerably different than it was a year ago, and the added profitability from the canned and frozen vegetable brand should continue to yield results.  As a result of the strong quarter, management raised its guidance to revenue of $1.39-$1.42 billion, and EPS of $2.05-$2.15, better than analyst estimates of $1.95. With a strong track record of acquisitions and a dividend yield of 5%, B&G should continue to be a solid bet for income investors.


Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

B&G Foods, Inc. Stock Quote
B&G Foods, Inc.
$22.29 (-1.85%) $0.42

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.