What happened
Shares of B&G Foods (NYSE: BGS), a distributor of shelf-stable and frozen foods across the U.S. (including Puerto Rico) and Canada, jumped 22% Wednesday afternoon after the company turned in a solid fourth-quarter result.
So what
Fourth-quarter revenue checked in at $470.2 million, a 2.6% increase over the prior year and ahead of analysts' estimates calling for $466 million. Adjusted earnings per share checked in at $0.28, right in line with analyst estimates.
Said Kenneth G. Romanzi, president and CEO of B&G Foods, in a press release: "I am happy to report 2019 financial results that are consistent with our short-term and long-term plans, which are based on our goal of a stable base business with pricing and cost savings initiatives to offset inflation, complemented by net sales and earnings growth through new product innovation and accretive acquisitions."
Image source: Getty Images.
Now what
2019 proved that B&G Foods could deliver on a couple of initiatives in an attempt to drive shareholder value in a crowded industry. The company acquired and integrated Clabber Girl, the nation's No. 1 brand of retail baking powder, and followed that up with a more recent acquisition of Farmwise Foods, known for Veggie Fries, Veggie Tots, and Veggie Rings.
In addition to its acquisitions, the company improved its organization and integrated a new enterprise resource planning (ERP) system. Yet until Wednesday, the stock had largely lagged over the past year.
Management anticipates 2020 sales between $1.66 billion and $1.68 billion, compared to analysts' estimates of $1.67 billion. Earnings per share are expected between $1.60 and $1.80 per share, which should end up favorable compared to analysts' estimates of $1.67 per share.
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