B&G's earnings missed the mark in Q4, but sales topped expectations.
B&G is selling its Green Giant businesses and expects earnings growth this year.
B&G Foods (NYSE: BGS) stock is roaring higher in Wednesday's trading. The company's share price was up 12.5% as of 11:40 a.m. ET. The S&P 500 was up 0.8%, and the Nasdaq Composite was up 1.4%. Earlier in the session, the stock had been up as much as 26.1%.
B&G's valuation is surging following the company's latest quarterly report. While earnings missed Wall Street's expectations, sales beat the target -- and the foods specialist announced some major product portfolio shifts that investors are happy about.
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B&G earned a non-GAAP (adjusted) profit of $0.28 per share on revenue of $539.6 million in last year's fourth quarter. Earnings came in $0.02 per share softer than expected, but sales beat the average analyst estimate by $2.1 million. Earnings per share were down 9.7% year over year, and sales were down by 2.2%. Despite the performance declines, the company laid out plans for some big changes this year that investors are bullish on.
For 2026, B&G is guiding for revenue between $1.655 billion and $1.695 billion. For reference, the business posted sales of roughly $1.83 billion last year. Meanwhile, adjusted earnings per share are projected to be between $0.55 and $0.65 -- up from $0.51 per share last year.
Before publishing its Q4 results, B&G announced that it was proceeding with the sale of its Green Giant U.S. business to Seneca Foods. The company is also divesting from its Canadian Green Giant unit. With the company selling off units that wound up being poor portfolio fits, the business is looking at a better profit profile going forward.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.