Tom Reese/Paul Rubillo, Dividend.com
Baked products maker Flowers Foods, Inc. (FLO) said Wednesday that despite a 19% jump in sales, its quarterly per-share profit still missed analysts' expectations by a penny.
The Thomasville, Georgia-based company reported first quarter net income of $37.4 million, or 40 cents per share, compared with $35.8 million, or 39 cents per share, in the year-ago period.
Sales grew 19% in the most-recent quarter, to $807 million from $676.7 million.
On average, Wall Street analysts expected a higher profit of 41 cents per share on lower revenue of $789.2 million.
Flowers cited a growing trend of consumers eating at home more, rather than eating out, for the revenue jump. The company also pointed to higher prices and acquisitions as factors contributing to the sales increase.
The maker of Nature's Own bread products reaffirmed its full-year profit range of $1.37 to $1.48 per share. On average, analysts are expecting $1.45 per share.
Flowers Foods shares fell $1.78, or -7.7%, in morning trading Wednesday.
The Bottom Line
We had removed shares of FLO from our “Recommended” list back on Aug.14, when the stock traded at $31.97. The company has a dividend yield of 2.62%, based on last night’s closing stock price of $22.92. The stock is nearing technical support at the 52-week lows of $20. If that fails to hold, we see the next area of support in the $14-17 price area. If the shares can rebound here, we see overhead resistance around the $24.50-26.00 levels. We would remain on the sidelines for now.
Flowers Foods, Inc. (FLO) is not recommended at this time, holding a Dividend.com DARS Rating of 3.2 out of 5 stars.
