Food Stocks Earnings Queued Up For Nov 2: INGR, MGPI, OME

The Q3 earnings season is in full swing, with results already out for 291 S&P 500 members. The results announced so far display significant improvement compared with the preceding quarters. The quarter is on track to report notable growth after five quarters of back-to-back decline. According to the latest Earnings Preview, of the 58.2% S&P 500 members that have reported Q3 results so far, 73.5% have posted positive earnings surprises and 57.4% have come ahead of top-line expectations.

The Consumer staples sector is showing positive signs with total earnings expected to grow 5.4%, while revenue is anticipated to inch up 1.1%. As of Oct 28, 53.1% of the total number of S&P 500 companies in this sector has reported their results, wherein 82.4% beat earnings and 47.1% of companies’ surpassed revenue estimates. Efficient pricing, solid cost reduction initiatives, lucrative acquisitions and efforts to enhance product portfolio cushion these companies from macroeconomic hurdles, consequently driving their bottom lines.

The food sector is part of the consumer staples sector and has so far reported decent earnings this season. Food stocks are particularly doing well in the third quarter. Leading firms from the industry like The Hershey’s Company (NYSE:HSY) , Pinnacle Foods, Inc. (NYSE:PF) , B&G Foods, Inc. (NYSE:BGS) , Mondelez International, Inc. (NASDAQ:MDLZ) , Kellogg Co. (NYSE:K) and many others have delivered better-than-expected Q3 earnings results despite currency headwinds and the sluggishness in emerging markets. Domestic business of these food companies has particularly fared well aided by an improving economic and consumer spending environment.

Let’s take a look at what’s in store for three major food stocks which are scheduled to release their quarterly numbers on Nov 2.

We start with Ingredion Incorporated (NYSE:INGR) which is scheduled to report third-quarter 2016 results before the opening bell. The company has an Earnings ESPof 0.00% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

However, we need to have a positive ESP and a Zacks Rank #3 to be confident about a positive surprise. Meanwhile, the Zacks Consensus Estimate for third-quarter earnings is pegged at $1.75. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Last quarter, this food company posted a positive earnings surprise of 3.59%. Additionally, the company posted positive surprises in all the trailing four quarters with an average positive surprise of 9.63%.

MGP Ingredients Inc. (NASDAQ:MGPI) is also slated to report third-quarter 2016 numbers before the market opens. The Zacks Consensus Estimate for third-quarter earnings is pegged at 31 cents. The company has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell).

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

It posted an average negative surprise of 7.5% in the trailing four quarters.

Omega Protein Corporation (NYSE:OME) is also slated to report third-quarter 2016 results after the closing bell. It posted a negative surprise of 24% in the previous quarter. The Zacks Consensus Estimate for third-quarter earnings is pegged at 53 cents. The company has an Earnings ESP of 3.77% and a Zacks Rank #4.

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