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What's in the Cards for Flowers Foods (FLO) in Q2 Earnings?
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Flowers Foods, Inc. (FLO - Free Report) is scheduled to release second-quarter 2020 results on Aug 6, after market close.
The Zacks Consensus Estimate for second-quarter earnings has been revised 2 cents upward in the past seven days to 30 cents a share, suggesting nearly 20% growth from the year-ago quarter’s reported figure. Moreover, the consensus mark for quarterly revenues is pegged at $1.02 billion, indicating a 4.1% rise from the prior-year quarter’s reported figure.
This packaged bakery food company has a trailing four-quarter earnings surprise of 5.7%, on average.
Key Factors
On Jul 20, Flowers Foods issued preliminary information on its second-quarter performance and projected net sales growth of nearly 4.5-5% year over year. It also predicted adjusted earnings to fall in the band of 30-33 cents a share, implying a 20-32% increase from the prior-year quarter’s reported number. The company has been gaining from coronavirus-led stockpiling apart from strength in branded retail with Nature's Own, Canyon Bakehouse, Dave's Killer Bread and Wonder brands. On first-quarter earnings call, management had stated that the branded retail sales are up more than 20% in second-quarter 2020 through May 14.
Moreover, the company has been progressing with the Project Centennial, originally launched in 2017. The plan is aimed at streamlining operations, fueling efficiencies, improving margins by curtailing costs, optimizing the supply chain and making prudent investments in aiding revenue growth. Further, Flowers Foods’ focus on refreshing key brands along with its efficient pricing strategy is commendable.
However, concerns related to foodservice business still remain. Moreover, Flowers Foods’ materials, supplies, labor and other production costs have been escalating due to increased workforce-related expenses for a while now.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Flowers Foods this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Flowers Foods currently carries a Zacks Rank #2 and an Earnings ESP of +4.49%.
More Stocks With Favorable Combinations
Here are a few other companies worth considering from the same sector as our model shows that these also have the right combination of elements to beat on earnings this time around.
Medifast (MED - Free Report) has an Earnings ESP of +2.53% and a Zacks Rank of 2, currently.
Energizer Holdings (ENR - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #3, presently.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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What's in the Cards for Flowers Foods (FLO) in Q2 Earnings?
Flowers Foods, Inc. (FLO - Free Report) is scheduled to release second-quarter 2020 results on Aug 6, after market close.
The Zacks Consensus Estimate for second-quarter earnings has been revised 2 cents upward in the past seven days to 30 cents a share, suggesting nearly 20% growth from the year-ago quarter’s reported figure. Moreover, the consensus mark for quarterly revenues is pegged at $1.02 billion, indicating a 4.1% rise from the prior-year quarter’s reported figure.
This packaged bakery food company has a trailing four-quarter earnings surprise of 5.7%, on average.
Key Factors
On Jul 20, Flowers Foods issued preliminary information on its second-quarter performance and projected net sales growth of nearly 4.5-5% year over year. It also predicted adjusted earnings to fall in the band of 30-33 cents a share, implying a 20-32% increase from the prior-year quarter’s reported number. The company has been gaining from coronavirus-led stockpiling apart from strength in branded retail with Nature's Own, Canyon Bakehouse, Dave's Killer Bread and Wonder brands. On first-quarter earnings call, management had stated that the branded retail sales are up more than 20% in second-quarter 2020 through May 14.
Moreover, the company has been progressing with the Project Centennial, originally launched in 2017. The plan is aimed at streamlining operations, fueling efficiencies, improving margins by curtailing costs, optimizing the supply chain and making prudent investments in aiding revenue growth. Further, Flowers Foods’ focus on refreshing key brands along with its efficient pricing strategy is commendable.
However, concerns related to foodservice business still remain. Moreover, Flowers Foods’ materials, supplies, labor and other production costs have been escalating due to increased workforce-related expenses for a while now.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Flowers Foods this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Flowers Foods, Inc. Price and EPS Surprise
Flowers Foods, Inc. price-eps-surprise | Flowers Foods, Inc. Quote
Flowers Foods currently carries a Zacks Rank #2 and an Earnings ESP of +4.49%.
More Stocks With Favorable Combinations
Here are a few other companies worth considering from the same sector as our model shows that these also have the right combination of elements to beat on earnings this time around.
Nu Skin Enterprises (NUS - Free Report) has an Earnings ESP of +6.35% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medifast (MED - Free Report) has an Earnings ESP of +2.53% and a Zacks Rank of 2, currently.
Energizer Holdings (ENR - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #3, presently.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>