Flowers Foods cuts 2026 outlook after Q2 sales, adjusted EPS miss estimates
FLO•Analyst view on the shares
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell".
The average consensus recommendation for the food processing peer group is "buy."
Wall Street's median 12-month price target for Flowers Foods Inc is $8.00, about 7.2% above its August 19 closing price of $7.46.
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago.
Quarterly sales and EPS miss estimates
Flowers Foods said second-quarter sales fell 4%, missing analyst expectations, and adjusted earnings per share also declined and missed estimates.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | Miss | $1.19 bln | $1.23 bln (5 Analysts) |
| Q2 Adjusted EPS | Miss | $0.21 | $0.22 (5 Analysts) |
| Q2 EPS | $0.19 | ||
| Q2 Adjusted Net Income | $44.10 mln | ||
| Q2 Net Income | $40.70 mln | ||
| Q2 Adjusted EBITDA | $111.30 mln |
Lower volume and higher costs दबressed results
The U.S. packaged bakery foods maker said net sales fell as favorable price/mix was more than offset by lower volume, with branded retail volume down 7.6% and overall volume down 5.8%.
The company attributed lower net income to increased marketing, labor and freight costs, partly offset by moderating ingredient costs.
