Flowers Foods (NYSE:FLO) Shares Gap Down After Earnings Miss

Key Points

• Flowers Foods missed quarterly expectations: EPS came in at $0.21 versus the $0.22 consensus, while revenue declined 4.0% year over year to $1.19 billion, below the $1.23 billion estimate.
• Demand and profitability weakened: Bread volumes fell 5.8%, net income dropped 30.3% to $40.7 million, and adjusted EBITDA declined 19.2% to $111.3 million.
• Shares came under pressure as guidance was reduced: Fiscal 2026 adjusted EPS guidance of $0.75–$0.85 and revenue guidance of $5.07–$5.14 billion were below analyst expectations, contributing to the stock’s gap-down opening and “Reduce” analyst consensus.

Shares of Flowers Foods, Inc. (NYSE:FLO - Get Free Report) gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $7.10, but opened at $6.90. Flowers Foods shares last traded at $7.22, with a volume of 3,106,009 shares.

The company reported $0.21 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.22 by ($0.01). Flowers Foods had a return on equity of 15.98% and a net margin of 1.38%.The company had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter last year, the business posted $0.28 EPS. Flowers Foods's quarterly revenue was down 4.0% on a year-over-year basis. Flowers Foods has set its FY 2026 guidance at 0.750-0.850 EPS.

Key Flowers Foods News

Here are the key news stories impacting Flowers Foods this week:

• Positive Sentiment: Pricing and mix increased 1.8% year over year, partially offsetting weaker demand. Chief Financial Officer Diego Scaglione also purchased 5,000 shares, while several institutional investors—including BlackRock and FMR—reported adding FLO shares. Flowers Foods Q2 Sales Fall 4% as Net Income Drops 30%
• Neutral Sentiment: Flowers Foods reported quarterly revenue of approximately $1.19 billion, compared with $1.23 billion expected, while earnings were $0.21 per share versus consensus estimates ranging from $0.22 to $0.23. The company’s net margin was 1.38% and return on equity was 15.98%. Flowers Foods Earnings Report
• Negative Sentiment: Second-quarter sales fell 4.0% year over year to $1.193 billion, and bread volumes declined 5.8%. Branded Retail sales decreased 3.8%, while Other sales fell 4.4%, indicating broad-based demand pressure. Flowers Foods Misses on Both Lines
• Negative Sentiment: Profitability deteriorated sharply: net income dropped 30.3% to $40.7 million, diluted EPS declined from $0.28 to $0.19, and adjusted EBITDA fell 19.2% to $111.3 million. Flowers Foods Q2 Sales Fall 4%
• Negative Sentiment: Fiscal 2026 guidance calls for adjusted EPS of $0.75–$0.85, below the roughly $0.83–$0.85 analyst outlook, and revenue of about $5.07–$5.14 billion versus expectations near $5.2 billion. The earnings miss and outlook reduction explain the selling pressure. Flowers Foods Lags Q2 Estimates
• Negative Sentiment: Chairman and CEO Ryals McMullian sold 209,000 shares during the past six months, an additional sentiment concern amid the company’s weakening operating performance.

Wall Street Analyst Weigh In

FLO has been the subject of a number of analyst reports. Weiss Ratings cut shares of Flowers Foods from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 13th. Jefferies Financial Group set a $7.00 price target on shares of Flowers Foods in a research report on Monday, August 3rd. Wall Street Zen lowered shares of Flowers Foods from a "buy" rating to a "hold" rating in a report on Sunday, May 3rd. Zacks Research upgraded shares of Flowers Foods from a "strong sell" rating to a "hold" rating in a research report on Thursday, May 21st. Finally, Stephens dropped their price objective on Flowers Foods from $11.00 to $8.00 and set an "equal weight" rating on the stock in a research note on Monday, May 18th. Four equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $8.00.

Insiders Place Their Bets

In related news, CFO Diego Anthony Scaglione purchased 5,000 shares of Flowers Foods stock in a transaction dated Monday, June 8th. The stock was bought at an average price of $7.51 per share, for a total transaction of $37,550.00. Following the completion of the acquisition, the chief financial officer directly owned 194,180 shares of the company's stock, valued at $1,458,291.80. This represents a 2.64% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 7.23% of the company's stock.

Hedge Funds Weigh In On Flowers Foods

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of Flowers Foods during the second quarter worth about $273,587,000. Gotham Asset Management LLC boosted its position in Flowers Foods by 859.6% during the 4th quarter. Gotham Asset Management LLC now owns 4,026,582 shares of the company's stock worth $43,809,000 after acquiring an additional 3,606,962 shares during the last quarter. Bank of America Corp DE bought a new position in shares of Flowers Foods during the 2nd quarter worth approximately $18,168,000. Norges Bank acquired a new stake in shares of Flowers Foods in the fourth quarter valued at approximately $21,680,000. Finally, AQR Capital Management LLC raised its holdings in shares of Flowers Foods by 70.1% in the fourth quarter. AQR Capital Management LLC now owns 4,603,093 shares of the company's stock valued at $50,082,000 after purchasing an additional 1,896,607 shares during the last quarter. 75.45% of the stock is owned by institutional investors and hedge funds.

Flowers Foods Stock Performance

The stock's 50-day moving average price is $7.80 and its 200 day moving average price is $8.44. The firm has a market cap of $1.54 billion, a P/E ratio of 20.80 and a beta of 0.40. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.77 and a quick ratio of 0.57.

Flowers Foods Company Profile

Flowers Foods, Inc is one of the largest producers of packaged bakery foods in the United States, offering a variety of fresh bread, buns, rolls, snack cakes and tortillas. Headquartered in Thomasville, Georgia, the company operates an extensive network of bakeries and distribution centers that serve retail grocery chains, convenience stores, mass merchandisers and foodservice customers nationwide. Flowers Foods markets its products under well-known brands such as Nature's Own, Wonder, Dave's Killer Bread, Mrs.

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