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Flowers Foods, Inc. FLO is likely to register top-line growth when it reports first-quarter fiscal 2025 earnings on May 16. The Zacks Consensus Estimate for revenues is pegged at $1.6 billion, which indicates an increase of 1.7% from the figure reported in the year-ago quarter.
The consensus mark for earnings has moved up a penny in the past seven days to 38 cents per share, which is in line with the prior-year quarter’s reported figure. FLO delivered a trailing four-quarter earnings surprise of 4.7%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
Flowers Foods, Inc. Price, Consensus and EPS Surprise
Flowers Foods, Inc. price-consensus-eps-surprise-chart | Flowers Foods, Inc. Quote
FLO’s Q1 Earnings: Key Factors to Watch
Flowers Foods’ focus on core priorities has been aiding its performance. These include developing its team, concentrating on brands, prioritizing margins and looking out for prudent mergers and acquisitions. To this end, management has been shifting its focus toward becoming a more brand-focused company.
Flowers Foods has been adhering to objectives, which include executing portfolio strategy by exiting the low-margin business and replacing it with a margin-accretive new business, enhancing cost structure, investing in brands to drive volume and share gains, enhancing the product mix, utilizing technology to improve data visibility, making better strategic decisions and investing in team to enhance overall execution. These efforts are likely to have contributed to the company’s performance in the quarter under review.
On its fiscal fourth-quarter earnings call, management highlighted strong tracked channel volume gains for core bread brands, Dave’s Killer Bread, Wonder and Canyon. Nature’s Own’s premium Perfectly Crafted line also posted unit growth in the fourth quarter, driven by sustained demand for differentiated offerings. Management noted this growth reflects successful innovation and solid market execution. The continued implementation of its portfolio strategy is likely to have aided the company’s performance in the to-be-reported quarter.
However, the company’s fiscal first-quarter results are likely to reflect the effects of a challenging consumer environment marked by shifts in spending behavior and higher costs stemming from elevated promotional activity. While the broader food industry has benefited from increased at-home consumption, Flowers Foods continues to face headwinds in key categories, including cake. Persistent category weakness is likely to have weighed on the upcoming quarter's performance. Our model indicates a 1.1% dip in overall volumes in the fiscal first quarter.