Food Stocks Releasing Earnings on Jul 28: MJN, BGS & More

With the Q2 earnings season in full swing, we have observed that the performance of consumer staples companies that have reported so far hasn’t been that impressive. Per the Earnings Preview report, as of Jul 22, 19.4% of the consumer staples companies in the S&P 500 index have reported their results. Of these, 66.7% delivered an earnings beat and about 50% came in ahead of revenue expectations. However, earnings and revenues declined 2.6% and 6.2%, respectively, in Q2.

However, we note that a few food companies from the broader consumer staples sector that have reported so far have done comparatively well. Among them, PepsiCo, Inc. (PEP) once again reported stellar Q2 results earlier this month thereby bringing the sector in the limelight. Pepsi also upped its full year earnings growth target based on a strong performance in the first half and a favorable outlook.

Last month, General Mills, Inc. (GIS) also reported better-than-expected fourth-quarter fiscal 2016 results, beating the estimates for both earnings and sales.

Five food companies, Mead Johnson Nutrition Company MJN, B&G Foods Inc. BGS, Pinnacle Foods Inc. PF, Smart & Final Stores, Inc. SFS and Ingredion Incorporated INGR, are set to report their second-quarter results on Jul 28. Let’s have a look at what might be in store for them.

Mead Johnson Nutrition Company

The global leader in pediatric nutrition is expected to report before the opening bell. The company delivered a positive earnings surprise of 3.57% in the previous quarter. Mead Johnson delivered positive earnings surprises in two of the past four quarters, with an average beat of 0.81%.

For second quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at 79 cents.

Mead Johnson has recently been observing record high market shares in Europe and Canada, with management expecting the trend to continue in the second quarter and beyond. However, it does not expect any business improvement in Brazil and Venezuela, with the latter having an acute product shortage as well. (Read more: What's in Store for Mead Johnson in Q2 Earnings?)

B&G Foods

This New Jersey-based shelf-stable and frozen food company is scheduled to report after the closing bell. Last quarter, the company posted a positive surprise of 27.45%. Moreover, the company has surpassed estimates in three out of the past four quarters, resulting in an average positive surprise of 5.67%.

For the second quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 46 cents.

B&G Foods’ Green Giant acquisition resulted in better-than-expected profitability in first-quarter 2016, which led management to raise its full year sales and profit expectations. The company has a huge product pipeline under the brand. These positives should benefit sales and profits in the soon-to-be reported quarter as well. (Read More: What's in the Cards for B&G Foods in Q2 Earnings?)

Pinnacle Foods

The branded food manufacturer is due to report after the market closes.

Last quarter, the company delivered in line earnings. However, in the trailing four quarters, the company reported an average positive earnings surprise of 1.63%.

For the second quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the quarter is pegged at 40 cents.

The Boulder Brands acquisition (completed in January) is expected to benefit sales and earnings in the second quarter. However, we believe, overall volumes will remain weak. Moreover, while productivity gains will provide bottom-line support, input cost inflation will hurt profits.

Smart & Final Stores

The value-oriented food and everyday staples retailer is due to report after the closing bell.

Last quarter, the company delivered in line earnings. However, in the trailing four quarters, the company reported an average positive earnings surprise of 6.67%.

The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 18 cents.

Ingredion Incorporated

This ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients is due to report before the market opens.

Last quarter, the company delivered a positive surprise of 23.40%. The company delivered positive earnings surprises in all of the past four quarters, with an average beat of 9.57%.

The company has an Earnings ESP of -0.60% and a Zacks Rank #2. The Zacks Consensus Estimate for the quarter is pegged at $1.66 per share.

Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!

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