U.S. markets close in 1 hour 41 minutes
  • S&P 500

    3,865.31
    -60.12 (-1.53%)
     
  • Dow 30

    31,638.52
    -323.34 (-1.01%)
     
  • Nasdaq

    13,298.40
    -299.56 (-2.20%)
     
  • Russell 2000

    2,233.02
    -51.36 (-2.25%)
     
  • Crude Oil

    63.42
    +0.20 (+0.32%)
     
  • Gold

    1,776.50
    -21.40 (-1.19%)
     
  • Silver

    27.72
    -0.21 (-0.76%)
     
  • EUR/USD

    1.2191
    +0.0022 (+0.18%)
     
  • 10-Yr Bond

    1.4820
    +0.0930 (+6.70%)
     
  • GBP/USD

    1.4046
    -0.0096 (-0.68%)
     
  • USD/JPY

    106.1330
    +0.2510 (+0.24%)
     
  • BTC-USD

    49,573.81
    -175.74 (-0.35%)
     
  • CMC Crypto 200

    990.20
    -4.46 (-0.45%)
     
  • FTSE 100

    6,651.96
    -7.01 (-0.11%)
     
  • Nikkei 225

    30,168.27
    +496.57 (+1.67%)
     

Flowers Foods, Inc. (NYSE:FLO) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.

Flowers Foods, Inc. (NYSE:FLO) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Flowers Foods reported US$4.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.72 beat expectations, being 4.3% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Flowers Foods

earnings-and-revenue-growth
earnings-and-revenue-growth

Following the recent earnings report, the consensus from six analysts covering Flowers Foods is for revenues of US$4.27b in 2021, implying a perceptible 2.7% decline in sales compared to the last 12 months. Per-share earnings are expected to soar 62% to US$1.17. In the lead-up to this report, the analysts had been modelling revenues of US$4.28b and earnings per share (EPS) of US$1.16 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$24.67, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Flowers Foods at US$28.00 per share, while the most bearish prices it at US$22.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Flowers Foods is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast revenue decline of 2.7%, a significant reduction from annual growth of 2.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Flowers Foods is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Flowers Foods' revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$24.67, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Flowers Foods going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Flowers Foods .

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.