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Here's How Flowers Foods (FLO) Looks Ahead of Q3 Earnings

Zacks Equity Research
·3 min read

Flowers Foods, Inc. FLO is scheduled to release third-quarter 2020 results on Nov 5, after market close.

The Zacks Consensus Estimate for third-quarter earnings has been stable in the past 30 days at 25 cents, which suggests growth of nearly 13.6% from the year-ago quarter’s tally. Moreover, the consensus mark for quarterly revenues is pegged at $976.5 million that indicates 1% rise from the prior-year quarter’s reported figure.

This packaged bakery food company has a trailing four-quarter earnings surprise of 8.2%, on average.

Key Factors

Flowers Foods’ third-quarter performance is likely to have benefited from strength in branded retail with Nature's Own, Canyon Bakehouse, Dave's Killer Bread and Wonder brands. The company is also gaining from burgeoning demand amid coronavirus-led pantry loading and increased at-home consumption. Also, favorable price/mix has been a driver.

Moreover, the company is progressing with the Project Centennial that is aimed at streamlining operations, fueling efficiencies, improving margins by curtailing costs, optimizing the supply chain and making prudent investments. Management is also on track with its core priorities that include developing its team, concentrating on brands, prioritizing margins and looking out for prudent buyouts. Also, the company expects its optimized portfolio to drive market share gains through innovation. All the aforementioned factors are likely to have driven the company’s top and the bottom line in the to-be-reported quarter.

However, concerns related to foodservice business still remain. Moreover, Flowers Foods’ materials, supplies, labor and other production costs have been witnessing higher startup costs for a while 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Flowers Foods, Inc. Price and EPS Surprise

Flowers Foods, Inc. Price and EPS Surprise
Flowers Foods, Inc. Price and EPS Surprise

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

Although Flowers Foods has a Zacks Rank #2, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks With Favorable Combinations

Here are some companies worth considering from the same sector as our model shows that these have the right combination of elements to beat on earnings this time around.

Nu Skin Enterprises NUS has an Earnings ESP of +2.02% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Grocery Outlet GO has an Earnings ESP of +10.76% and a Zacks Rank of 2, currently.

Energizer ENR has an Earnings ESP of +1.67% and a Zacks Rank #3, presently.

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Energizer Holdings, Inc. (ENR) : Free Stock Analysis Report
 
Nu Skin Enterprises, Inc. (NUS) : Free Stock Analysis Report
 
Flowers Foods, Inc. (FLO) : Free Stock Analysis Report
 
Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report
 
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Zacks Investment Research