Flowers Foods (FLO) Queues for Q3 Earnings: Is a Beat in Store?
Flowers Foods, Inc. FLO is likely to register a top-line increase when it reports third-quarter fiscal 2023 earnings on Nov 9. The Zacks Consensus Estimate for revenues is pegged at $1.2 billion, suggesting growth of 5.1% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 28 cents per share. This indicates a decline of 6.7% from the year-ago quarter’s reported figure. FLO has a trailing four-quarter earnings surprise of 7.6%, on average.
Factors to Note
Flowers Foods has been benefiting from its core priorities, which include developing its team, concentrating on brands, prioritizing margins and looking out for prudent mergers and acquisitions. Management has been shifting its focus toward becoming a more brand-focused company, as part of which its innovation has been yielding favorably. These upsides and an optimized portfolio are likely to have driven market share gains in the quarter under review.
Flowers Foods has been benefiting from its pricing efforts for a while now. In the second quarter of fiscal 2023, the pricing/mix increased 13.3%. Favorable pricing efforts boosted sales in both branded retail and other channels. Impressive pricing and portfolio strategies, along with enhanced efficiencies, have been helping the company mitigate various inflationary pressures.
Flowers Foods, Inc. Price, Consensus and EPS Surprise
Flowers Foods, Inc. price-consensus-eps-surprise-chart | Flowers Foods, Inc. Quote
FLO has been battling hurdles due to cost inflation. Input cost inflation, reduced production volumes, higher product returns and elevated maintenance costs were witnessed in the second quarter. Management expects inflation to persist in fiscal 2024, which remains a concern for the quarter under review. Apart from this, high selling, distribution, and administrative (SD&A) expenses may have impacted margins.
For the third quarter, we expect SD&A expenses to increase 4.5% year over year. Our model suggests an adjusted operating margin contraction of 80 basis points to 6.8%.
What the Zacks Model Unveils
Our proven model predicts 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 the case here.
Flowers Foods carries a Zacks Rank #2 and has an Earnings ESP of +1.35%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies worth considering as our model shows that these also have the correct combination to beat on earnings this time:
Inter Parfums IPAR currently has an Earnings ESP of +8.09% and a Zacks Rank #2. The company is likely to register top-and-bottom-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $368 million, indicating a rise of 31.2% 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 per share of $1.27 suggests a decrease of 2.3% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.9%, on average.
The J. M. Smucker Co. SJM has an Earnings ESP of +0.27% and a Zacks Rank #3. The company is slated to witness a top-line decline when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for SJM’s quarterly revenues is pegged at around $2 billion, which suggests a decrease of 11.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for J. M. Smucker’s quarterly earnings has remained unchanged over the past 30 days at $2.47 per share, which calls for growth of 2.9% from the year-ago quarter’s reported number. SJM delivered an earnings surprise of 7.3%, on average, in the trailing four quarters.
United Natural Foods UNFI currently has an Earnings ESP of +70.09% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for United Natural Foods’ quarterly revenues is pegged at $7.5 billion, suggesting growth of 0.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for United Natural’s bottom line has deteriorated considerably in the past 30 days to a loss of 10 cents per share. UNFI delivered a negative earnings surprise of around 3%, on average, in the trailing four quarters.
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The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Flowers Foods, Inc. (FLO) : Free Stock Analysis Report
United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
