Flowers Foods Revises EPS and Revenue Guidance Downward

Flowers Foods' latest earnings report revealed adjusted EPS downgraded to $1.05-$1.15, and net sales expectations revised downward. The results missed analysts' estimates, reflecting potential challenges for the company.

Date: 16-05-2025

AI Rating: 5

EPS and Revenue Guidance Adjustments
Flowers Foods, Inc. has revised its adjusted Earnings Per Share (EPS) down to a forecast of approximately $1.05 to $1.15 for fiscal 2025, significantly lower than the previous guidance of $1.11 to $1.24. This downward revision signals potential financial struggles, as it shows the company may be facing challenges that could weigh on profitability.

The exclusion of the Simple Mills acquisition from the EPS estimates reveals a commitment to organic growth assessment without the effects of new acquisitions. Even with this exclusion, the expectations are notably lower, hinting at operational challenges.

Additionally, net sales expectations were also lowered to approximately $5.297 billion to $5.395 billion, down from earlier guidance which had anticipated a higher range. Similar to the EPS estimates, these figures indicate possible revenue slowdown, with the exclusion scenario reflecting continued difficulties in reaching prior expectations.

First Quarter Performance
In the first quarter, Flowers Foods reported a net income of $53 million, or $0.25 per share, which is a stark contrast to $73.04 million, or $0.34 per share, from the previous year. The decline in net income is concerning, especially as the adjusted earnings also fell short of analyst expectations of $0.37 per share. Such underperformance against expectations could affect investor confidence.

The company's revenue for the quarter decreased by 1.4% to $1.554 billion from $1.576 billion a year earlier, further affirming concerns about the company's ability to maintain or grow its customer base. This decline in revenue coupled with the drop in earnings indicates potential ongoing operational and market challenges.

In light of this information, it is prudent for investors to reassess their positions in Flowers Foods, considering both the revisions in guidance and the disappointing first-quarter results as signals of the company's current financial health and future growth potential.

Stocks: FLO