Will Flowers Foods Earn More From Wonder Bread?http://www.fool.com/investing/general/2013/05/15/will-flowers-foods-earn-more-from-wonder-bread.aspx Dan Caplinger
May 15, 2013
Tomorrow, Flowers Foods (NYSE: FLO) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed, knee-jerk reaction to news that turns out to be exactly the wrong move.
Flowers isn't the largest company in the stock market, but it's a big player in the market for bread and other baked goods. Even though the industry may seem like a fairly staid corner of the market, Flowers has made some exciting strategic moves recently to bolster its growth. Let's take an early look at what's been happening with Flowers Foods over the past quarter and what we're likely to see in its quarterly report.
Stats on Flowers Foods
How will Flowers Foods fare this quarter?
The big news this quarter came from its role in the bankruptcy proceedings for Hostess Brands. Flowers bid $360 million for its bread brands, including Wonder Bread and Butternut, as well as related baking assets. Yet Flowers expressed no interest in bidding on the company's iconic Twinkies and other snack cakes, and instead, Apollo Global Management (NYSE: APO) and privately held Metropoulos bid $410 million for the right to produce and sell Hostess Cup Cakes, Zingers, Twinkies, and other cake brands. Little Debbie maker McKee Foods bid on the Drake's cake line. With no other bidders emerging, Flowers was awarded court approval for the purchase in March.
Although the Hostess acquisition was high profile, Flowers has made many similar though smaller acquisitions in recent yea