B&G Foods shares rise 3% after raising guidance

Shares of B&G Foods Inc. climbed nearly 3% in premarket trading on Tuesday after the packaged foods company raised its full-year guidance and reported adjusted earnings that exceeded Wall Street estimates.

The New York-based group said it now expects adjusted earnings per share of $1.10 to $1.20 for the full year, up from its prior range of $0.95 to $1.10. The midpoint of the new guidance implies a 15% increase from the company’s 2023 adjusted EPS of $0.96.

B&G Foods attributed the upward revision to continued cost discipline, supply chain efficiencies and pricing actions implemented to counter persistent inflation in key input costs such as ingredients and packaging. The company also noted stronger-than-anticipated demand across its core retail brands, including Green Giant, Cream of Wheat and Victoria.

Analysts polled by Refinitiv had forecast adjusted EPS of $1.05 for the year, according to the company’s statement. B&G Foods’ adjusted EPS for the second quarter came in at $0.28, beating the $0.25 estimate. Revenue for the period totaled $502.1 million, slightly below the $505.2 million consensus.

Management reaffirmed its full-year net sales outlook of $2.1 billion to $2.2 billion, unchanged from prior guidance. The company plans to provide further details during its earnings call scheduled for later today.

The stock’s early gain follows a broader trend of food manufacturers adjusting guidance upward amid stabilizing commodity prices and resilient consumer spending on branded staples. B&G Foods’ shares have underperformed the S&P 500 Consumer Staples Index over the past 12 months but have gained roughly 8% year-to-date.