B&G Foods, Inc.’s BGS first-quarter 2015 adjusted earnings per share of 38 cents surpassed the Zacks Consensus Estimate of 32 cents by 18.8% and increased 11.8% year over year.
Adjusted earnings per share in the first quarter of 2015 exclude the impact of product recall and acquisition expenses. Including the impact of acquisition expenses, earnings per share came in at 34 cents.
B&G Foods Inc. - Earnings Surprise | FindTheCompany
Total revenue of $217.1 million surpassed the Zacks Consensus Estimate of $177 million by 22.7%.Total revenue of this packaged foods company increased 9.6% year over year as it benefited from strong sales of Speciality Brands and an increase in pricing.
Net sales of the company’s comparable base business (excluding impact of acquisitions, and the Rickland Orchards shortfall) increased 2.4% on the back of price increase and higher volumes.
Adjusted gross margin of 31.0% however declined 160 basis points (bps) year over year, partially due to customer refunds related to the Ortega and Las Palmas recall announced in Nov 2014. Excluding the impact of refund, gross margin was 31.7% in the quarter.
Other than product recall, adjusted gross margin was mostly impacted by higher distribution costs and a shift in mix toward lower-margin products. Unfavorable Canadian exchange rate also hurt gross margins, partially offset by an increase in base business prices.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 7.5% to $49.9 million during the quarter.
2015 Outlook
The improving pricing and volume trends witnessed in the first quarter 2015 are expected to continue for the rest of the year. B&G Foods reaffirmed its outlook for 2015. The company expects 2015 adjusted earnings per share to range between $1.48 and $1.55. Net sales are expected to range between $860.0 million and $880.0 million. Adjusted EBITDA is expected to be in the $196.0 million to $202.0 million range.
B&G Foods has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the consumer staples space include Want Want China Holdings Ltd. WWNTY, Fufeng Group Limited FFNGY and Monster Beverage Corporation MNST. While Want Want China Holdings and Monster Beverage sport a Zacks Rank #1 (Strong Buy), Fufeng Group Limited holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
B&G FOODS CL-A (BGS): Free Stock Analysis Report
MONSTER BEVERAG (MNST): Free Stock Analysis Report
FUFENG GROUP LT (FFNGY): Free Stock Analysis Report
WANT WANT CHINA (WWNTY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research