Flowers Foods (NYSE:FLO) Issues Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Flowers Foods (NYSE:FLO) posted its quarterly earnings data on Thursday. The company reported $0.21 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.01), FiscalAI reports. Flowers Foods had a net margin of 1.06% and a return on equity of 14.86%. The company had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the prior year, the company earned $0.28 earnings per share. The firm’s revenue was down 4.0% on a year-over-year basis. Flowers Foods updated its FY 2026 guidance to 0.750-0.850 EPS.

Here are the key takeaways from Flowers Foods’ conference call:

• Second-quarter results missed expectations: net sales fell 4%, volume declined 5.8%, adjusted EBITDA dropped 19% to $111 million, and adjusted diluted EPS decreased to $0.21 from $0.30.
• Flowers Foods lowered its full-year 2026 outlook, now expecting net sales of $5.07 billion-$5.142 billion, adjusted EBITDA of $453 million-$481 million, and adjusted diluted EPS of $0.75-$0.85, reflecting persistent consumer pressure and competitive intensity.
• Several growth areas showed momentum, including Simple Mills, where retail sales rose 13%, cookies grew 39%, and crackers increased 8%; Nature’s Own Perfectly Crafted sales also grew more than 8%, while Wonder Cake gained 60 basis points of unit share.
• Management expects cost actions to generate approximately $9 million of savings in the remainder of 2026 and about $20 million in annualized run-rate savings after implementation, despite one-time costs of approximately $6 million-$9 million.
• The company paid down roughly $70 million of debt year to date and secured a new $400 million delayed-draw facility to fully de-risk its October 2026 bond maturity, while continuing to fund dividends and invest in brands and innovation.

Flowers Foods Stock Performance

Shares of NYSE FLO opened at $7.00 on Friday. The company has a 50-day simple moving average of $7.78 and a 200-day simple moving average of $8.43. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.77 and a quick ratio of 0.57. The company has a market cap of $1.48 billion, a PE ratio of 26.92 and a beta of 0.40. Flowers Foods has a 12 month low of $6.80 and a 12 month high of $15.98.

Insider Buying and Selling

In other Flowers Foods news, CFO Diego Anthony Scaglione purchased 5,000 shares of the business’s stock in a transaction on Monday, June 8th. The stock was bought at an average cost of $7.51 per share, for a total transaction of $37,550.00. Following the acquisition, the chief financial officer owned 194,180 shares of the company’s stock, valued at approximately $1,458,291.80. The trade was a 2.64% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 7.23% of the company’s stock.

Institutional Trading of Flowers Foods

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FLO. Wilmington Savings Fund Society FSB increased its stake in shares of 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 acquiring an additional 1,663 shares during the last quarter. Geneos Wealth Management Inc. grew its holdings in Flowers Foods by 64.4% in the second 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. Advisory Services Network LLC purchased a new stake in Flowers Foods in the third quarter valued at approximately $58,000. Kestra Advisory Services LLC acquired a new position in Flowers Foods during the fourth quarter worth approximately $68,000. Finally, EverSource Wealth Advisors LLC raised its stake in Flowers Foods by 140.7% during the second quarter. EverSource Wealth Advisors LLC now owns 5,061 shares of the company’s stock worth $81,000 after purchasing an additional 2,958 shares during the period. Hedge funds and other institutional investors own 75.45% of the company’s stock.

Key Stories Impacting Flowers Foods

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

• Positive Sentiment: Some institutional investors increased their positions in Flowers Foods during the second quarter, including BlackRock, which added more than 14.6 million shares. The CFO also purchased shares, providing limited signs of insider or institutional confidence. Flowers Foods Q2 Sales Fall 4% as Net Income Drops 30%
• Neutral Sentiment: An investment analysis argued that Flowers Foods’ valuation and underlying value may be more favorable than current investor sentiment suggests. However, the potential value case is competing with weak operating momentum and lowered earnings expectations. Flowers Foods: Where Sentiment and Value Part Ways
• Negative Sentiment: Second-quarter revenue fell 4.0% year over year to approximately $1.19 billion, below the roughly $1.23 billion analyst consensus. EPS was $0.21, slightly below estimates, while earnings declined from $0.28 a year earlier. Pricing and mix gains of 1.8% were more than offset by a 5.8% decline in volume, and adjusted EBITDA fell 19.2%. Flowers Foods Posts Downbeat Q2 Results
• Negative Sentiment: Management lowered fiscal 2026 expectations to approximately $5.07 billion–$5.14 billion in sales and adjusted EPS of $0.75–$0.85, below prior market expectations. The combination of declining bread volumes, weaker profitability and softer guidance is the primary reason FLO moved lower. Flowers Foods Reports Second Quarter 2026 Results

Analyst Ratings Changes

FLO has been the topic of a number of recent research reports. Stephens dropped 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, May 18th. Weiss Ratings downgraded Flowers Foods from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, August 13th. Zacks Research upgraded shares of Flowers Foods from a “strong sell” rating to a “hold” rating in a research note on Thursday, May 21st. Wall Street Zen downgraded shares of Flowers Foods from a “buy” rating to a “hold” rating in a research report on Sunday, May 3rd. Finally, Jefferies Financial Group set a $7.00 target price on shares of Flowers Foods in a report on Monday, August 3rd. Four equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average price target of $8.00.

About Flowers Foods

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.