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Why Did B&G Foods Stock Fall 10% after Fiscal 4Q15 Results?

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Stock fell 10% after 4Q15 results

B&G Foods (BGS) reported its fiscal 4Q15 and fiscal 2015 results on February 25, 2016, after the Markets closed. With earnings below estimates by 12% and lower-than-expected guidance for 2016, BGS stock fell 10% the next day. B&G Foods missed estimates in spite of revenue and earnings, showing positive growth for the quarter.

The stock has fallen 1% since its last earnings report on October 27, 2015. The stock fell by 1% on the day of its fiscal 3Q15 earnings release. The company has gained ~18% in 2015 due to revenue growth, rising profit margins, fascinating growth in net income, good return on equity, and cash flow from operations.

The stock has risen 7% so far in 2016 and has fallen 3% in the last two months. The stock’s price movements on year-to-date and month-to-date bases are 3.4% and 0.52%, respectively. BGS has fallen 3.1% on a trailing-five-day basis.

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Peers’ stock performances

B&G Foods, based in Parsippany, New Jersey, is part of the processed and packaged food industry. Through its subsidiaries, B&G Foods manufactures, sells, and distributes shelf-stable food and household products in the United States, Canada, and Puerto Rico. Its portfolio of products includes hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, and more.

Its peers in the industry include Tyson Foods (TSN), General Mills (GIS), and ConAgra Foods (CAG). Tyson Foods reported its fiscal 1Q16 results on February 5, 2016. The stock rose 10% following the earnings release. General Mills and ConAgra Foods will report their fiscal 3Q16 results in March and April, respectively. TSN, GIS, and CAG closed at $65.17, $59.00, and $42.08, respectively, in Friday’s trade.

The Guggenheim S&P 500 Equal Weight Consumer Staples ETF (RHS) invests a total of 7.8% in peers’ stocks. RHS closed Friday’s trade at $117.80 and has risen 1.5% YTD (year-to-date). The SPDR Dow Jones Small-Cap Growth ETF (SLYG) invests 0.63% in BGS. SLYG closed Friday’s trade at $162.92 and has fallen 5.5% YTD.

In the next part of the series, we’ll see how BGS and its peers are trading compared to their key moving averages.

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