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What Happened?
Shares of packaged foods company B&G Foods (NYSE:BGS) fell 19.4% in the afternoon session after the company reported underwhelming third-quarter earnings. Its sales and earnings missed Wall Street's estimates. Given the poor results, it lowered its full-year revenue and EPS guidance, suggesting the weaknesses recorded during the quarter might persist as management called out a slower-than-expected recovery in sales trends. While the weak trends partly explain the declining volumes during the quarter, the sale of the Green Giant U.S. shelf-stable product line also had a negative impact. Overall, this was a weaker quarter.
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What The Market Is Telling Us
B&G Foods’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for B&G Foods and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 8 months ago when the stock gained 23.5% on the news that the company reported fourth-quarter results with revenue, gross margin, and EPS outperforming Wall Street's estimates. B&G Foods also provided strong earnings forecast for the full year, which exceeded analysts' expectations.
The only minor negative was that its operating margin missed analysts' expectations. Zooming out, this was still a good quarter, showing that the company is staying on track.
B&G Foods is down 36.1% since the beginning of the year, and at $7.12 per share, it is trading 40.2% below its 52-week high of $11.91 from February 2024. Investors who bought $1,000 worth of B&G Foods’s shares 5 years ago would now be looking at an investment worth $412.99.
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