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Investing.com -- Flowers Foods, Inc. (NYSE:FLO) on Friday reported second quarter earnings that met analyst expectations but missed on revenue, sending shares down 3.4% as the company lowered its full-year guidance amid softness in traditional bread sales.
The bakery products company reported adjusted earnings per share of $0.30 for the second quarter, in line with analyst estimates, while revenue came in at $1.24 billion, below the consensus forecast of $1.27 billion.
Revenue increased 1.5% YoY, as the benefit from the Simple Mills acquisition offset pricing/mix declines of 1.2% and volume decreases of 2.4%.
Adjusted EBITDA decreased 4.0% to $137.7 million, representing 11.1% of net sales, a 60-basis point decrease from the same period last year. The company’s net income fell 12.8% to $58.4 million.
"Macroeconomic uncertainty and shifting consumer demand have continued to pressure the bread category, but our portfolio strategy has shown promise in offsetting those headwinds," said Ryals McMullian, chairman and CEO of Flowers Foods .
"We are proactively investing in innovation and M&A to transform our portfolio and align it with consumer demand for better-for-you and value-oriented products."
Flowers Foods revised its fiscal 2025 outlook, now expecting revenue between $5.24 billion and $5.31 billion, down from its previous guidance of $5.30-$5.40 billion and below analyst expectations of $5.31 billion.
The company also lowered its adjusted EPS forecast to $1.00-$1.10 from $1.05-$1.15 previously.
The reduced guidance reflects lower-than-expected second quarter revenues and anticipated continued softness in traditional loaf sales amid an increasingly competitive environment.
The company noted that its Simple Mills acquisition contributed $61.4 million in net sales during the quarter.
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