Flowers Foods Anticipates Modest Earnings Growth for Q3 2024

Flowers Foods, Inc. (FLO) is set to unveil its third-quarter 2024 earnings on November 8, 2024. Analysts predict that earnings will reach 30 cents per share, reflecting a 3.5% increase compared to the same period last year. This estimate has remained stable over the past month.

On average, FLO has experienced an earnings surprise of 1.9% over the last four quarters. The revenue forecast stands at $1.2 billion, which is nearly equal to the reported revenue from the same quarter last year.

Keep track of quarterly earnings reports: See Zacks Earnings Calendar.

Key Considerations for FLO’s Earnings Release

Flowers Foods is currently implementing a strategic shift to enhance profitability. The company aims to increase sales of its higher-margin branded products while improving profits from its private label and away-from-home sectors. Market leaders like Dave’s Killer Bread, Wonder, and Canyon are central to this branding strategy.

Flowers Foods, Inc. Price and EPS Overview

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

Despite these positive strategies, the current economic environment, marked by inflation, has led consumers to alter their spending habits. More shoppers are choosing cost-effective meals at home, which poses challenges for the quick-service restaurant part of FLO’s business. This shift likely affects sales and profitability in that segment, with projections indicating a 0.5% decrease in volumes for the quarter.

Another factor to consider is the fluctuating costs of ingredients. Nevertheless, Flowers Foods is actively working to improve its financial standing through pricing strategies and operational efficiencies. Notably, the company has raised its expected annual savings target from $30-40 million to $40-50 million thanks to several measures, including workforce adjustments, reduced outside spending, and refinement of its Direct-Store-Delivery operations.

Given these efforts, we forecast a pricing increase of 0.7% and an expansion of the adjusted operating margin by 50 basis points to 7.6% for Q3.

Upcoming Earnings Predictions for FLO

Using our model, it’s difficult to clearly predict an earnings surprise for Flowers Foods this quarter. While a positive Earnings ESP combined with a favorable Zacks Rank enhances the chances of an earnings beat, FLO presents a different scenario.

With a Zacks Rank of 3 and an Earnings ESP of -0.85%, the outlook is less optimistic. Discover potential stocks to monitor using our Earnings ESP Filter.

Other Earnings Candidates

Consider these alternative companies that are expected to perform well based on their earnings predictions.

Ollie’s Bargain Outlet Holdings, Inc. (OLLI) shows an Earnings ESP of +1.50% and a Zacks Rank of 3. Anticipated revenue growth for its upcoming Q3 fiscal results stands at 8.1%, with revenues projected at $519 million. The earnings estimate indicates an 11.8% rise, averaging an earnings surprise of 7.9%.

Sweetgreen, Inc. (SG) holds an Earnings ESP of +4.76% with a Zacks Rank of 3. Revenue estimates suggest a 13.2% year-over-year growth, reaching about $173.7 million, while earnings are projected to increase by 27.3% compared to last year.

Jack in the Box Inc. (JACK) presents an Earnings ESP of +1.28% and a Zacks Rank of 3 but is forecasted to experience a revenue decline of 3.9% in its fiscal Q4, with estimates totaling $357.9 million. Nevertheless, earnings expectations show a slight increase of 2.8% from last year, currently estimated at $1.12 per share.

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For more detailed analyses: Janus Henderson Sustainable & Impact Core Bond ETF (JACK), Flowers Foods, Inc. (FLO), Ollie’s Bargain Outlet Holdings, Inc. (OLLI), Sweetgreen, Inc. (SG).

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.