Flowers Foods Q3 sales fall on challenging consumer environment; lowers FY guidance
Overview
U.S. packaged bakery firm's Q3 sales fell 4.7%, slightly missing analyst expectations
Adjusted EPS for Q3 missed analyst estimates and declined sharply yr/yr
Company cut full-yr sales and profit outlook amid continued challenging market conditions
Outlook
Flowers Foods cuts 2026 net sales outlook to $5.016 bln-$5.063 bln, down from $5.070 bln-$5.142 bln
Company lowers 2026 adjusted EBITDA forecast to $415 mln-$430 mln from $453 mln-$481 mln
Flowers Foods now sees 2026 adjusted diluted EPS at $0.63-$0.68, down from $0.75-$0.85
Result Drivers
VOLUME DECLINES - Co said lower sales volume, especially in branded retail, more than offset favorable pricing/mix
COST PRESSURES - Increased marketing investment, higher logistics costs, and greater outside purchases of product weighed on profitability
CHALLENGING CONSUMER ENVIRONMENT - Co cited pressure on household budgets, evolving consumer behavior, and heightened promotional activity as factors impacting results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Miss* | $1.17 bln | $1.18 bln (6 Analysts) |
Q3 Adjusted EPS | Miss | $0.10 | $0.15 (5 Analysts) |
Q3 EPS | $0.07 | ||
Q3 Adjusted Net Income | $21.43 mln | ||
Q3 Net Income | $14.40 mln | ||
Q3 Adjusted EBITDA | $78.93 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy."
Wall Street's median 12-month price target for Flowers Foods Inc is $7.00, about 12% above its November 11 closing price of $6.25
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Nov 10 - Armanino Foods Q3 net sales rise 10% on food-service, international growth
Nov 10 - B&G Foods Q3 sales beat estimates on acquisitions, volume growth
Nov 12 - UK's Premier Foods half-year revenue rises on branded sales growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)