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Will Project Centennial Aid Flowers Foods' (FLO) Q1 Earnings?
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Flowers Foods, Inc. (FLO - Free Report) is slated to release first-quarter 2019 results on May 15, after market close. This provider of packaged bakery foods reported average negative earnings surprise of 3.9% in the trailing four quarters. Let’s see what’s in store this time.
Factors Likely to Impact in Q1
Flowers Foods focuses on acquisitions to strengthen product portfolio and expand in untapped markets. The buyouts of Dave’s Killer Bread and Alpine Valley Bread are yielding results. These combined with strong brand such as Nature's Own and Wonder are expected to act as key catalyst in the upcoming quarterly announcement.
Additionally, the company is progressing well with the Project Centennial — an initiative to optimize supply chain operations, enhance efficiency as well as bolster product offerings and develop leading capacities. The project also focuses on cost reduction to boost margins. Along with these, the company is implementing prudent pricing to improve price mix and drive revenues. Such well-spun efforts are likely to remain an upside in the first quarter.
While such factors look encouraging, there are certain headwinds in Flowers Foods’ path that might affect the forthcoming quarter’s results. Most importantly, the company is witnessing a steady rise in material costs, such as supplies labor and other products. For 2019, management expects cost inflation to persist. This mars expectations for the first quarter as well. Moreover, soft volumes in the foodservice, cake and vending businesses are likely to be a drag.
Flowers Foods, Inc. Price, Consensus and EPS Surprise
The Zacks Consensus Estimate for first-quarter earnings is pegged at 30 cents, which is flat with earnings delivered in the year-ago quarter. The current estimate has been stable in the past 30 days.
Further, the consensus mark for revenues is pegged at $1,235 million, calling for a rise of approximately 2.4% from the year-ago quarter’s figure.
What the Zacks Model Unveils
Our proven model doesn’t show that Flowers Foods is likely to beat bottom-line estimates this quarter. For this to happen, the stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post earnings beat:
Kimberly-Clark Corporation (KMB - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Blue Apron Holdings , a Zacks #3 Ranked company, has an Earnings ESP of +2.57%.
Monster Beverage (MNST - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank of 3.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Will Project Centennial Aid Flowers Foods' (FLO) Q1 Earnings?
Flowers Foods, Inc. (FLO - Free Report) is slated to release first-quarter 2019 results on May 15, after market close. This provider of packaged bakery foods reported average negative earnings surprise of 3.9% in the trailing four quarters. Let’s see what’s in store this time.
Factors Likely to Impact in Q1
Flowers Foods focuses on acquisitions to strengthen product portfolio and expand in untapped markets. The buyouts of Dave’s Killer Bread and Alpine Valley Bread are yielding results. These combined with strong brand such as Nature's Own and Wonder are expected to act as key catalyst in the upcoming quarterly announcement.
Additionally, the company is progressing well with the Project Centennial — an initiative to optimize supply chain operations, enhance efficiency as well as bolster product offerings and develop leading capacities. The project also focuses on cost reduction to boost margins. Along with these, the company is implementing prudent pricing to improve price mix and drive revenues. Such well-spun efforts are likely to remain an upside in the first quarter.
While such factors look encouraging, there are certain headwinds in Flowers Foods’ path that might affect the forthcoming quarter’s results. Most importantly, the company is witnessing a steady rise in material costs, such as supplies labor and other products. For 2019, management expects cost inflation to persist. This mars expectations for the first quarter as well. Moreover, soft volumes in the foodservice, cake and vending businesses are likely to be a drag.
Flowers Foods, Inc. Price, Consensus and EPS Surprise
Flowers Foods, Inc. price-consensus-eps-surprise-chart | Flowers Foods, Inc. Quote
Which Way Are Estimates Heading?
The Zacks Consensus Estimate for first-quarter earnings is pegged at 30 cents, which is flat with earnings delivered in the year-ago quarter. The current estimate has been stable in the past 30 days.
Further, the consensus mark for revenues is pegged at $1,235 million, calling for a rise of approximately 2.4% from the year-ago quarter’s figure.
What the Zacks Model Unveils
Our proven model doesn’t show that Flowers Foods is likely to beat bottom-line estimates this quarter. For this to happen, the stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Though Flowers Foods has a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post earnings beat:
Kimberly-Clark Corporation (KMB - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Blue Apron Holdings , a Zacks #3 Ranked company, has an Earnings ESP of +2.57%.
Monster Beverage (MNST - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank of 3.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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