Stock Story -
Packaged bakery food company Flower Foods (NYSE:FLO) will be reporting results tomorrow after market close. Here’s what to look for.
Flowers Foods (NYSE:FLO) met analysts’ revenue expectations last quarter, reporting revenues of $1.58 billion, up 2.8% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ gross margin estimates but a miss of analysts’ earnings estimates.
Is Flowers Foods a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Flowers Foods’s revenue to grow 1.2% year on year to $1.24 billion, slowing from the 8.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Flowers Foods has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Flowers Foods’s peers in the perishable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Vital Farms delivered year-on-year revenue growth of 38.5%, beating analysts’ expectations by 6.5%, and Pilgrim's Pride reported revenues up 5.8%, falling short of estimates by 1.4%. Vital Farms traded down 12.3% following the results while Pilgrim's Pride was up 2.3%.
Read the full analysis of Vital Farms’s and Pilgrim's Pride’s results on StockStory.
Investors in the perishable food segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Flowers Foods’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $23.9 (compared to the current share price of $22.73).
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