Flowers Foods (NYSE:FLO) Shares Gap Up After Earnings Beat

Key Points

• Flowers Foods shares gapped up after the company reported stronger-than-expected quarterly earnings, opening at $7.62 versus the prior close of $7.01.
• The company posted EPS of $0.29, edging past estimates by $0.01, while revenue of $1.57 billion was roughly in line with expectations and up 1.1% year over year.
• Flowers Foods also cut its dividend by 50% to $0.125 per quarter, a move some analysts say could improve cash flow flexibility for debt reduction and future buybacks.

Flowers Foods, Inc. (NYSE:FLO - Get Free Report)'s stock price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $7.01, but opened at $7.62. Flowers Foods shares last traded at $7.5290, with a volume of 2,513,794 shares trading hands.

The company reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.01. The company had revenue of $1.57 billion during the quarter, compared to analyst estimates of $1.58 billion. Flowers Foods had a net margin of 1.59% and a return on equity of 16.61%. The firm's revenue for the quarter was up 1.1% compared to the same quarter last year. During the same period last year, the business earned $0.35 EPS. Flowers Foods has set its FY 2026 guidance at 0.800-0.900 EPS.

Flowers Foods Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, June 12th will be paid a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 6.6%. The ex-dividend date is Friday, June 12th. Flowers Foods's dividend payout ratio (DPR) is 247.50%.

Flowers Foods News Summary

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

• Positive Sentiment: Flowers Foods reported Q1 EPS of $0.29, slightly ahead of expectations, while revenue of $1.57 billion was roughly in line and sales rose 1.1% year over year. Management also raised FY2026 revenue guidance to $5.2 billion-$5.3 billion, suggesting modest top-line improvement. Article Title
• Positive Sentiment: The company cut its quarterly dividend by 50%, which some analysts view as a bullish catalyst because it frees up cash for debt reduction and potentially future buybacks, improving Flowers Foods’ financial flexibility over time. Article Title
• Neutral Sentiment: The company also declared a new quarterly dividend of $0.125 per share, equal to a 7.1% annualized yield, which may support income-focused investors even after the cut. Article Title
• Neutral Sentiment: Flowers Foods highlighted brand and product innovation, including a refresh of Nature’s Own with a simpler recipe, which could help support demand but is not an immediate earnings driver. Article Title
• Negative Sentiment: Despite the earnings beat, EPS fell from $0.35 a year ago, and the company’s full-year EPS guidance of $0.80-$0.90 is only modestly ahead of analyst expectations, limiting enthusiasm. Article Title

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Stephens reduced their target price on Flowers Foods from $11.00 to $8.00 and set an "equal weight" rating on the stock in a report on Monday. Deutsche Bank Aktiengesellschaft dropped their price target on Flowers Foods from $11.00 to $7.00 and set a "hold" rating on the stock in a research report on Monday, March 30th. Wall Street Zen cut Flowers Foods from a "buy" rating to a "hold" rating in a research note on Sunday, May 3rd. BNP Paribas Exane decreased their price objective on shares of Flowers Foods from $10.00 to $8.00 and set an "underperform" rating for the company in a report on Thursday, April 9th. Finally, Weiss Ratings cut shares of Flowers Foods from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday, May 4th. Four analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and an average price target of $9.60.

Insider Buying and Selling at Flowers Foods

In related news, CEO Ryals Mcmullian sold 209,000 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $8.03, for a total value of $1,678,270.00. Following the sale, the chief executive officer owned 813,380 shares of the company's stock, valued at approximately $6,531,441.40. This trade represents a 20.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 7.23% of the company's stock.

Institutional Investors Weigh In On Flowers Foods

Hedge funds have recently added to or reduced their stakes in the stock. WealthCollab LLC grew its position in shares of Flowers Foods by 1,623.7% during the fourth quarter. WealthCollab LLC now owns 2,327 shares of the company's stock worth $25,000 after acquiring an additional 2,192 shares during the last quarter. Wilmington Savings Fund Society FSB boosted its stake in Flowers Foods by 225.6% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 2,400 shares of the company's stock valued at $31,000 after purchasing an additional 1,663 shares during the period. Geneos Wealth Management Inc. boosted its stake in Flowers Foods by 64.4% during the 2nd quarter. Geneos Wealth Management Inc. now owns 2,555 shares of the company's stock valued at $41,000 after purchasing an additional 1,001 shares during the period. True Wealth Design LLC grew its position in Flowers Foods by 262.9% in the 4th quarter. True Wealth Design LLC now owns 2,620 shares of the company's stock worth $29,000 after purchasing an additional 1,898 shares during the last quarter. Finally, IFP Advisors Inc increased its stake in shares of Flowers Foods by 140.7% in the fourth quarter. IFP Advisors Inc now owns 3,025 shares of the company's stock valued at $33,000 after purchasing an additional 1,768 shares during the period. 75.45% of the stock is currently owned by institutional investors.

Flowers Foods Stock Up 8.0%

The firm's 50 day simple moving average is $8.30 and its 200 day simple moving average is $9.91. The company has a market cap of $1.60 billion, a price-to-earnings ratio of 18.86 and a beta of 0.46. The company has a quick ratio of 0.54, a current ratio of 0.75 and a debt-to-equity ratio of 1.04.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.