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Flowers Foods Q2 Earnings on Deck: Everything You Should Know

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Key Takeaways

  • Flowers Foods faces softer loaf demand, price-sensitive consumers and heavy promotions ahead of Q2 results.
  • FLO may see lower volumes and cost pressures weigh on operating leverage and margins.
  • Flowers Foods could benefit from Simple Mills, Nature's Own, keto, protein and snack strength.

Flowers Foods, Inc. (FLO - Free Report) is likely to witness a top-and bottom-line decline when it reports second-quarter 2026 earnings on Aug. 20. The Zacks Consensus Estimate for revenues is pegged at around $1.2 billion, indicating a nearly 1% decrease from the year-ago period level. 

The consensus mark for earnings has remained unchanged over the past 30 days at 23 cents a share, which suggests a drop of 23.3% from the figure reported in the year-ago period. FLO has a trailing four-quarter earnings surprise of 11.1%, on average.

Flowers Foods, Inc. Price, Consensus and EPS Surprise

Flowers Foods, Inc. Price, Consensus and EPS Surprise

Flowers Foods, Inc. price-consensus-eps-surprise-chart | Flowers Foods, Inc. Quote

Factors Likely to Influence FLO’s Upcoming Results

Flowers Foods’ second-quarter performance is likely to have been pressured by continued softness in the traditional loaf category and strain on household budgets. Inflationary pressures are likely to have kept consumers price-sensitive and selective, encouraging trade-down across price tiers and shifts toward value-oriented channels. An intensely promotional environment is also likely to have weighed on volumes and market share. 

On its last earnings call, management remained cautious on the near-term top-line outlook amid challenging category trends and ongoing consumer pressure. Our model suggests a 2.7% decline in volumes for the second quarter.

Lower volumes are likely to have constrained operating leverage and margins. Cost pressures related to diesel fuel, edible oils, packaging resin and potential tariff-related import costs may also have posed headwinds. However, productivity initiatives, disciplined cost management and tight control over commodities and overhead are likely to have provided some offset.

On the positive side, results are likely to benefit from strength in differentiated, better-for-you offerings. Simple Mills’ growth was forecast to accelerate through the balance of 2026 as innovation gained momentum. The Nature’s Own relaunch and supporting marketing campaign are likely to have aided demand, while strength in keto and protein offerings, snacks and other adjacent categories may have supported performance.

Earnings Whispers for FLO

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 currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. 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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Target Corporation (TGT - Free Report) currently has an Earnings ESP of +5.09% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pinned at $26.1 billion, which indicates 3.4% growth 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 Target’s upcoming quarter’s EPS is pegged at $2.25, which implies 9.8% growth year over year. TGT delivered a trailing four-quarter earnings surprise of 8.2%, on average.

Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +1.61 and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $11.2 billion, which indicates an increase of 4.2% from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Dollar General’s second-quarter fiscal 2026 EPS is pegged at $2.00, implying 7.5% year-over-year growth. DG has a trailing four-quarter earnings surprise of roughly 21%, on average.

Ross Stores, Inc. (ROST - Free Report) currently has an Earnings ESP of +4.03% and a Zacks Rank of 3. The consensus estimate for Ross Stores’ quarterly revenues is pinned at $6.1 billion, which suggests 10.7% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at $1.92, which calls for a 10.7% jump year over year. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average.

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