Yahoo Finance B&G Foods, Inc. (NYSE:BGS) Just Reported, And Analysts Assigned A US$8.86 Price Target
B&G Foods, Inc. (NYSE:BGS) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a workmanlike result, with revenues of US$445m coming in 2.0% ahead of expectations, and statutory earnings per share of US$0.05, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on B&G Foods after the latest results.
See our latest analysis for B&G Foods
Following the recent earnings report, the consensus from five analysts covering B&G Foods is for revenues of US$1.95b in 2024. This implies a perceptible 2.4% decline in revenue compared to the last 12 months. Statutory losses are forecast to balloon 84% to US$0.23 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.96b and earnings per share (EPS) of US$0.11 in 2024. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 6.1% to US$8.86, with the analysts signalling that growing losses would be a definite concern. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values B&G Foods at US$10.00 per share, while the most bearish prices it at US$8.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting B&G Foods is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 4.8% annualised decline to the end of 2024. That is a notable change from historical growth of 4.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.1% per year. It's pretty clear that B&G Foods' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts are expecting B&G Foods to become unprofitable next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of B&G Foods' future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple B&G Foods analysts - going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 3 warning signs for B&G Foods (1 is significant!) that you need to be mindful of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
