We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for revenues is pegged at $1,205 million, suggesting 6.8% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged at 28 cents per share over the past 30 days. The projection indicates a decrease of 9.7% from the figure reported in the year-ago period quarter. The packaged bakery food product company has a trailing four-quarter earnings surprise of 6.9%, on average.
Foot Locker, Inc. Price, Consensus and EPS Surprise
A focus on core priorities has been working well for Flowers Foods. These include developing its team, concentrating on brands, prioritizing margins and exploring prudent mergers and acquisitions. To this end, management has been shifting its focus toward becoming a more brand-focused company. The company’s optimized portfolio and gains from innovation are likely to have aided market share gains in the quarter under review.
However, Flowers Foods has been battling hurdles due to cost inflation. In the first quarter of fiscal 2023, materials, supplies, labor and other production costs (excluding depreciation and amortization) escalated by 170 basis points to 52.2% of sales on rising input cost inflation. We expect the metric to be 52.3% in the second quarter of 2023 compared with 51.9% reported in the year-ago period.
Flowers Foods also witnessed a rise in marketing expenses and acquisition-related costs in the first quarter. The company’s increased focus on marketing and innovation behind brands is likely to keep its cost burden elevated, though it is expected to drive long-term growth. FLO expects costs related to upgrading its ERP system to be nearly $95-$105 million in 2023. These factors are likely to have affected margins in the second quarter. However, robust pricing and saving measures and efforts to enhance business efficiency remain upsides.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Flowers Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Flowers Foods has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Coty (COTY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.4% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +16.51% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $281.9 million, calling for growth of 83.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 26 cents, indicating an improvement from 12 cents reported in the year-ago quarter. CELH had an earnings surprise of 81.8% in the last reported quarter.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Image: Bigstock
What Must You Know Ahead of Flowers Foods' (FLO) Q2 Earnings?
Flowers Foods, Inc. (FLO - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2023 earnings on Aug 10.
The Zacks Consensus Estimate for revenues is pegged at $1,205 million, suggesting 6.8% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged at 28 cents per share over the past 30 days. The projection indicates a decrease of 9.7% from the figure reported in the year-ago period quarter. The packaged bakery food product company has a trailing four-quarter earnings surprise of 6.9%, on average.
Foot Locker, Inc. Price, Consensus and EPS Surprise
Foot Locker, Inc. price-consensus-eps-surprise-chart | Foot Locker, Inc. Quote
Factors to Consider
A focus on core priorities has been working well for Flowers Foods. These include developing its team, concentrating on brands, prioritizing margins and exploring prudent mergers and acquisitions. To this end, management has been shifting its focus toward becoming a more brand-focused company. The company’s optimized portfolio and gains from innovation are likely to have aided market share gains in the quarter under review.
However, Flowers Foods has been battling hurdles due to cost inflation. In the first quarter of fiscal 2023, materials, supplies, labor and other production costs (excluding depreciation and amortization) escalated by 170 basis points to 52.2% of sales on rising input cost inflation. We expect the metric to be 52.3% in the second quarter of 2023 compared with 51.9% reported in the year-ago period.
Flowers Foods also witnessed a rise in marketing expenses and acquisition-related costs in the first quarter. The company’s increased focus on marketing and innovation behind brands is likely to keep its cost burden elevated, though it is expected to drive long-term growth. FLO expects costs related to upgrading its ERP system to be nearly $95-$105 million in 2023. These factors are likely to have affected margins in the second quarter. However, robust pricing and saving measures and efforts to enhance business efficiency remain upsides.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Flowers Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Flowers Foods has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Coty (COTY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.4% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +16.51% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $281.9 million, calling for growth of 83.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 26 cents, indicating an improvement from 12 cents reported in the year-ago quarter. CELH had an earnings surprise of 81.8% in the last reported quarter.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.