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Flowers Foods (FLO) Q2 Earnings in the Cards: Things to Note
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Flowers Foods, Inc. (FLO - Free Report) is likely to see top-line growth when it reports second-quarter 2024 earnings on Aug 16. The consensus mark for quarterly revenues is pegged at $1.24 billion, which indicates growth of 1.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 33 cents per share, which is in line with the figure reported in the year-ago period. FLO has a trailing four-quarter earnings surprise of 4.1%, on average. However, the packaged bakery food product company delivered a negative earnings surprise of 5% in the last reported quarter.
Flowers Foods, Inc. Price, Consensus and EPS Surprise
Flowers Foods’ focus on core priorities has been aiding. These include developing its team, concentrating on brands, prioritizing margins and looking out for prudent mergers and acquisitions. To this end, management has been shifting its focus toward becoming a more brand-focused company.
Flowers Foods has been benefiting from its portfolio strategy, which is aimed at transitioning a larger part of its sales to higher-margin branded retail products, alongside enhancing the profitability of the private label and away-from-home business. The company has been solidifying its brands via innovation and marketing investments. A focus on innovation and product differentiation, such as introducing new products like DKB bars and DKB protein bars, has successfully captured consumer interest and expanded market share in adjacent categories.
These upsides and favorable pricing are likely to have driven performance in the second quarter.
However, Flowers Foods faces a challenging operating landscape characterized by volatile consumer spending patterns. Recent data reveals a decline in fast-food traffic and a negative trend in at-home food and beverage unit sales toward the end of the first quarter. Economic pressures are pushing consumers to seek greater value, yet promotional activity has not returned to pre-pandemic levels. These factors, along with high selling, distribution and administrative costs, are likely to have acted as deterrents.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Flowers Foods this time around. 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 carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -0.17%. 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:
The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 78 cents implies an increase of 16.4% from the year-ago reported number.
Ollie's Bargain’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $562.4 million, which suggests an increase of 9.3% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.89% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80.1 billion, which suggests growth of 1.4% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s earnings has remained unchanged in the past 30 days at $5.02. The consensus mark for earnings suggests growth of 3.3% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
Coty (COTY - Free Report) has an Earnings ESP of +22.73% and a Zacks Rank of 3 at present. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY’s quarterly earnings has remained unchanged in the past 30 days at 5 cents. The consensus mark for earnings indicates a 400% surge from the figure reported in the year-ago quarter.
The consensus estimate for quarterly revenues is pegged at $1.38 billion, which calls for a rise of 1.8% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 22.2%.
Image: Bigstock
Flowers Foods (FLO) Q2 Earnings in the Cards: Things to Note
Flowers Foods, Inc. (FLO - Free Report) is likely to see top-line growth when it reports second-quarter 2024 earnings on Aug 16. The consensus mark for quarterly revenues is pegged at $1.24 billion, which indicates growth of 1.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 33 cents per share, which is in line with the figure reported in the year-ago period. FLO has a trailing four-quarter earnings surprise of 4.1%, on average. However, the packaged bakery food product company delivered a negative earnings surprise of 5% in the last reported quarter.
Flowers Foods, Inc. Price, Consensus and EPS Surprise
Flowers Foods, Inc. price-consensus-eps-surprise-chart | Flowers Foods, Inc. Quote
Things to Consider
Flowers Foods’ focus on core priorities has been aiding. These include developing its team, concentrating on brands, prioritizing margins and looking out for prudent mergers and acquisitions. To this end, management has been shifting its focus toward becoming a more brand-focused company.
Flowers Foods has been benefiting from its portfolio strategy, which is aimed at transitioning a larger part of its sales to higher-margin branded retail products, alongside enhancing the profitability of the private label and away-from-home business. The company has been solidifying its brands via innovation and marketing investments. A focus on innovation and product differentiation, such as introducing new products like DKB bars and DKB protein bars, has successfully captured consumer interest and expanded market share in adjacent categories.
These upsides and favorable pricing are likely to have driven performance in the second quarter.
However, Flowers Foods faces a challenging operating landscape characterized by volatile consumer spending patterns. Recent data reveals a decline in fast-food traffic and a negative trend in at-home food and beverage unit sales toward the end of the first quarter. Economic pressures are pushing consumers to seek greater value, yet promotional activity has not returned to pre-pandemic levels. These factors, along with high selling, distribution and administrative costs, are likely to have acted as deterrents.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Flowers Foods this time around. 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 carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -0.17%. 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:
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +2.38% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 78 cents implies an increase of 16.4% from the year-ago reported number.
Ollie's Bargain’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $562.4 million, which suggests an increase of 9.3% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.89% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80.1 billion, which suggests growth of 1.4% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s earnings has remained unchanged in the past 30 days at $5.02. The consensus mark for earnings suggests growth of 3.3% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
Coty (COTY - Free Report) has an Earnings ESP of +22.73% and a Zacks Rank of 3 at present. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY’s quarterly earnings has remained unchanged in the past 30 days at 5 cents. The consensus mark for earnings indicates a 400% surge from the figure reported in the year-ago quarter.
The consensus estimate for quarterly revenues is pegged at $1.38 billion, which calls for a rise of 1.8% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 22.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.