Flowers Foods, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Simply Wall St.
2024-11-12

Shareholders might have noticed that Flowers Foods, Inc. (NYSE:FLO) filed its quarterly result this time last week. The early response was not positive, with shares down 3.0% to US$21.56 in the past week. The result was positive overall - although revenues of US$1.2b were in line with what the analysts predicted, Flowers Foods surprised by delivering a statutory profit of US$0.31 per share, modestly greater than 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Flowers Foods after the latest results.

Check out our latest analysis for Flowers Foods

NYSE:FLO Earnings and Revenue Growth November 12th 2024

Taking into account the latest results, Flowers Foods' seven analysts currently expect revenues in 2025 to be US$5.21b, approximately in line with the last 12 months. Per-share earnings are expected to ascend 13% to US$1.29. In the lead-up to this report, the analysts had been modelling revenues of US$5.23b and earnings per share (EPS) of US$1.28 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of US$24.00, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Flowers Foods, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$20.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Flowers Foods' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.3% growth on an annualised basis. This is compared to a historical growth rate of 5.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.8% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Flowers Foods.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$24.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Flowers Foods going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Flowers Foods that you need to take into consideration.

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

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

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