B&G Foods May Surprise With Q4 Earnings

| About: B&G Foods, (BGS)

B&G Foods (NYSE:BGS) CEO David Wenner spoke at the ICR XChange conference on January 12th and used a good portion of his allotted time to discuss the company's recent acquisition of Culver Specialty Brands from Uniliver (NYSE:UN). Wenner disclosed that "the integration would be complete tomorrow" January 13th. That is certainly good news for B&G investors since the Culver products are expected to be immediately accretive to free cash flow and earnings.

For those unfamiliar with B&G, the company describes itself as a manufacturer and distributor of a "diversified portfolio of high-quality, shelf-stable foods." These brands include Ac'cent, B&M, Cream of Wheat, Ortega, Polaner and Mrs. Dash. The company currently pays a $0.92 annual dividend and yields just under 4%, higher than most of its much larger competitors, including Kraft (KFT) and General Mills (NYSE:GIS) which yield 3% and Pepsi (NYSE:PEP) at 3.2%.

For those who are fans of Jim Cramer, he once again recommended B&G a buy a few days ago. I also recommended the stock recently, and after hearing one particular comment at the conference by Wenner, I feel as though the fourth quarter and/or 2012 guidance will surprise to the upside. As Wenner was showing a chart titled "Third Quarter Update," he said:

Through third quarter, and it's a shame it isn't a few weeks later, I could talk to you about the full year.

Am I reading too much into the one sentence? Perhaps, but this certainly doesn't sound like someone getting ready to report results that are either disappointing or just meet Wall Street expectations. Regardless, the timely integration of the Culver acquisition bodes well for the future of the company, its dividend and its stock.

Disclosure: I am long BGS, PEP. I have no positions in the other stocks mentioned in this article. I occasionally sell covered calls on some of my positions, and may close or roll them forward at any time.