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Factors Setting the Tone for Flowers Foods (FLO) Q1 Earnings

Zacks Equity Research

Flowers Foods, Inc. FLO is scheduled to release first-quarter 2020 results on May 13. We note that this packaged bakery food company’s has a trailing four-quarter positive earnings surprise of 2.2%, on average.

The Zacks Consensus Estimate for first-quarter 2020 earnings has been stable in the past 30 days at 34 cents per share, which suggests growth of 6.3% from the year-ago quarter’s reported figure. The consensus mark for revenues is pegged at $1.32 billion, which indicates a rise of 4.3% from the prior-year quarter’s reported figure.

Flowers Foods Inc Price and EPS Surprise

 

Flowers Foods Inc Price and EPS Surprise

Flowers Foods Inc price-eps-surprise | Flowers Foods Inc Quote


Factors to Note

Flowers Foods has been progressing with the second phase of Project Centennial, which was originally launched in 2017. The plan is aimed at streamlining operations, fueling efficiencies, improving margins by curtailing costs, optimizing the supply chain and making prudent investments to aid revenue growth

Further, we commend Flowers Foods’ focus on refreshing key brands through adjacencies and enhancing supply-chain productivity to lift margins. Additionally, the company’s efficient pricing strategy has been yielding. Apart from these, Flower Foods’ has been benefiting from its focus on acquisitions to strengthen the product portfolio and expand in untapped markets. In this regard, the successful integration of Canyon Bakehouse (acquired in December 2018) has been boosting the top line.

However, Flowers Foods’ materials, supplies, labor and other production costs (exclusive of depreciation and amortization) have been bearing the brunt of reduced manufacturing efficiencies and increased workforce-related costs for quite some time now.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Flowers Foods carries a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

The J M Smucker Company SJM has an Earnings ESP of +1.65% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Campbell Soup Company CPB has an Earnings ESP of +12.88% and a Zacks Rank #2.

United Natural Foods Inc UNFI has an Earnings ESP of +12.09% and a Zacks Rank #2.

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Campbell Soup Company (CPB) : Free Stock Analysis Report
 
The J M Smucker Company (SJM) : Free Stock Analysis Report
 
United Natural Foods Inc (UNFI) : Free Stock Analysis Report
 
Flowers Foods Inc (FLO) : Free Stock Analysis Report
 
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