The 10-second takeaway
For the quarter ended April 21 (Q1), Flowers Foods met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Margins dropped across the board.
Flowers Foods reported revenue of $898.2 million. The nine analysts polled by S&P Capital IQ expected to see a top line of $892.2 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $801.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.28. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.28 per share. GAAP EPS of $0.28 for Q1 were 6.7% lower than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.7%, 220 basis points worse than the prior-year quarter. Operating margin was 6.6%, 180 basis points worse than the prior-year quarter. Net margin was 4.2%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $702.5 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $2.98 billion. The average EPS estimate is $1.02.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 347 members out of 357 rating the stock outperform, and 10 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Flowers Foods a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Flowers Foods is hold, with an average price target of $21.29.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Flowers Foods. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.