Flowers Foods Earnings: Here’s Why Investors are Buying Shares Now

Flowers Foods, Inc. (NYSE:FLO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.55%.

Flowers Foods, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 60% to $0.24 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Rose 31.79% to $898.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Flowers Foods, Inc. reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.23. It beat the average revenue estimate of $859.39 million.

Quoting Management: Commenting on second quarter results, President and CEO Allen Shiver said, “Our team’s extraordinary efforts to serve customers’ needs resulted in another record quarter for Flowers Foods. Similar to the results reported last quarter, sales were up across all channels and earnings were strong. Margins improved due to higher volume and capacity utilization. It is gratifying that our long-term investments in our bakeries, distribution systems, and our team positioned us to take advantage of growth opportunities available in the marketplace. Our confidence in the current year and long-term outlook is reflected in our guidance.

Key Stats (on next page)…

Revenue decreased 20.57% from $1.13 billion in the previous quarter. EPS decreased 22.58% from $0.31 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.21 to a profit $0.23. For the current year, the average estimate has moved up from a profit of $0.93 to a profit of $0.97 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , , , ,  

More from The Cheat Sheet