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Flowers Foods' (FLO) Q4 Earnings Coming Up: What to Expect?
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Flowers Foods, Inc. (FLO - Free Report) is likely to register top-line growth when it reports fourth-quarter fiscal 2023 earnings on Feb 8. The Zacks Consensus Estimate for revenues is pegged at $1.1 billion, suggesting an increase of 4.2% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 20 cents per share, which indicates a decline of nearly 13% from the year-ago quarter’s reported figure. FLO has a trailing four-quarter earnings surprise of 6.8%, on average.
Factors to Consider
Flowers Foods has been benefiting from its core priorities, which include developing its team, concentrating on brands, prioritizing margins and undertaking prudent acquisitions. Management has been shifting focus toward becoming a more brand-focused company. Flowers Foods’ optimized portfolio has been driving market share gains through innovation. To this end, the Dave’s Killer Bread brand has been doing particularly well.
Flowers Foods, Inc. Price, Consensus and EPS Surprise
Moving to margins, the company has been undertaking pricing and saving measures and efforts to enhance business efficiency. It has been focused on transitioning a larger part of its sales to higher-margin branded retail products (which increased 3% year over year and formed 64.3% of sales in the third quarter of 2023).
Apart from this, the company has been on track with digital transformation and supply-chain efforts. Flowers Foods is ahead of the track with its savings plan and now expects to achieve savings in the band of $30-$35 million in 2023. These factors bode well for the quarter under review.
Flowers Foods has been benefiting from its pricing efforts for a while now. Impressive pricing and portfolio strategies, along with enhanced efficiencies, have been helping the company mitigate various inflationary pressures to generate better margins. The continuation of these upsides bodes well. Our model suggests the price/mix to be up 5.4% in the fourth quarter of 2023.
However, Flowers Foods’ selling, distribution and administrative (SD&A) expenses have been expanding as a percentage of sales on a year-over-year basis. Flowers Foods’ increased focus on marketing and innovation behind brands adds to its cost burden for the near term. We expect SD&A expenses to have increased 260 basis points to 41.1% of sales in 2023. This may have impacted the fourth-quarter performance.
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 odds of an earnings beat, which is not the case here.
Flowers Foods has an Earnings ESP of 0.00%, while it carries 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 worth considering as our model shows that these have the correct combination to beat on earnings this time:
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% 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 Inter Parfums’ quarterly earnings of 35 cents suggests a decrease of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
TreeHouse Foods (THS - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #2. THS is likely to record a top-and-bottom-line decline when it reports fourth-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating a 7% drop from the prior-year quarter’s actual. The consensus mark for earnings is pegged at 71 cents per share, implying a 27.6% decrease from that reported in the year-ago quarter. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 3. KO is likely to register top-and-bottom-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Coca-Cola’s quarterly revenues is pegged at $10.6 billion, suggesting growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days at 48 cents per share. The consensus estimate for earnings suggests 6.7% growth from the year-ago quarter’s reported number. KO delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
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Flowers Foods' (FLO) Q4 Earnings Coming Up: What to Expect?
Flowers Foods, Inc. (FLO - Free Report) is likely to register top-line growth when it reports fourth-quarter fiscal 2023 earnings on Feb 8. The Zacks Consensus Estimate for revenues is pegged at $1.1 billion, suggesting an increase of 4.2% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 20 cents per share, which indicates a decline of nearly 13% from the year-ago quarter’s reported figure. FLO has a trailing four-quarter earnings surprise of 6.8%, on average.
Factors to Consider
Flowers Foods has been benefiting from its core priorities, which include developing its team, concentrating on brands, prioritizing margins and undertaking prudent acquisitions. Management has been shifting focus toward becoming a more brand-focused company. Flowers Foods’ optimized portfolio has been driving market share gains through innovation. To this end, the Dave’s Killer Bread brand has been doing particularly well.
Flowers Foods, Inc. Price, Consensus and EPS Surprise
Flowers Foods, Inc. price-consensus-eps-surprise-chart | Flowers Foods, Inc. Quote
Moving to margins, the company has been undertaking pricing and saving measures and efforts to enhance business efficiency. It has been focused on transitioning a larger part of its sales to higher-margin branded retail products (which increased 3% year over year and formed 64.3% of sales in the third quarter of 2023).
Apart from this, the company has been on track with digital transformation and supply-chain efforts. Flowers Foods is ahead of the track with its savings plan and now expects to achieve savings in the band of $30-$35 million in 2023. These factors bode well for the quarter under review.
Flowers Foods has been benefiting from its pricing efforts for a while now. Impressive pricing and portfolio strategies, along with enhanced efficiencies, have been helping the company mitigate various inflationary pressures to generate better margins. The continuation of these upsides bodes well. Our model suggests the price/mix to be up 5.4% in the fourth quarter of 2023.
However, Flowers Foods’ selling, distribution and administrative (SD&A) expenses have been expanding as a percentage of sales on a year-over-year basis. Flowers Foods’ increased focus on marketing and innovation behind brands adds to its cost burden for the near term. We expect SD&A expenses to have increased 260 basis points to 41.1% of sales in 2023. This may have impacted the fourth-quarter performance.
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 odds of an earnings beat, which is not the case here.
Flowers Foods has an Earnings ESP of 0.00%, while it carries 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 worth considering as our model shows that these have the correct combination to beat on earnings this time:
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% 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 Inter Parfums’ quarterly earnings of 35 cents suggests a decrease of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
TreeHouse Foods (THS - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #2. THS is likely to record a top-and-bottom-line decline when it reports fourth-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating a 7% drop from the prior-year quarter’s actual. The consensus mark for earnings is pegged at 71 cents per share, implying a 27.6% decrease from that reported in the year-ago quarter. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 3. KO is likely to register top-and-bottom-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Coca-Cola’s quarterly revenues is pegged at $10.6 billion, suggesting growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days at 48 cents per share. The consensus estimate for earnings suggests 6.7% growth from the year-ago quarter’s reported number. KO delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.