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Food Stocks to Watch for Earnings on Aug 10; STKL, ARMK, FLO

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The Q2 earnings season is drawing to a close with 87.7% of S&P 500 companies having already reported their quarterly results.

Of the S&P 500 members that have reported financial results so far, 70.7% have beaten on earnings and 52.7% surpassed revenue estimates, as per our Earnings Preview report. However, total earnings for these companies were down 4.1% year over year while revenues declined 0.9%.

Among the S&P biggies, the food companies have delivered mixed results. While Kellogg Company (K - Free Report) , The Kraft Heinz Company (KHC - Free Report) and Mondelez International, Inc. (MDLZ - Free Report) beat earnings expectations on aggressive cost savings, their sales performance has remained below expectations. While The Hershey Company (HSY - Free Report) did manage to beat the sales expectation, it was only due to the favorable timing of shipments in North America. This leading chocolate manufacturer once again lowered its sales expectation for 2016 citing weak growth in the confectionary category in North America and persistent macroeconomic challenges in China as the main concerns.

Increasing global category challenges because of soft consumer demand are hurting sales of these companies. U.S. food producers are struggling from shifting consumer preference toward natural and organic ingredients over packaged and processed food.

Three food companies, Aramark (ARMK - Free Report) , Flowers Foods, Inc. (FLO - Free Report) and SunOpta Inc. (STKL - Free Report) , are set to report their quarterly results on Aug 10. Let’s have a look at what might be in store for them.

SunOpta

The organic, non-GMO and specialty foods maker will report second-quarter results before the opening bell.

SunOpta posted a negative surprise of 25.0% in the last reported quarter. The company has missed estimates in three of the past four quarters, resulting in an average negative surprise of 25.57%.

SUNOPTA INC Price and EPS Surprise

SUNOPTA INC Price and EPS Surprise | SUNOPTA INC Quote

The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 6 cents.

Aramark

The global leader in food, facilities management and uniforms will report third-quarter fiscal 2016 results before market open.

Last quarter, Aramark delivered a positive earnings surprise of 2.94%. The company surpassed estimates in three of the trailing four quarters but missed in one with an average negative surprise of 0.39%.

ARAMARK HOLDING Price and EPS Surprise

ARAMARK HOLDING Price and EPS Surprise | ARAMARK HOLDING Quote

The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is 28 cents per share.

Flowers Foods

The fresh packaged bakery foods producer will release its second-quarter earnings after the closing bell on Aug 10. However, the company will hold a conference call the next day.

Last quarter, Flowers Foods delivered a negative earnings surprise of 3.45%. The company has missed estimates in three of the last four quarters, resulting in an average negative surprise of 6.55%.

FLOWERS FOODS Price and EPS Surprise

FLOWERS FOODS Price and EPS Surprise | FLOWERS FOODS Quote

The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 26 cents per share.

Don’t miss out on our full earnings release articles for these food stocks, as the actual results might hold some surprises!

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