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How Did Flowers Foods Perform in Fiscal 2Q16?

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Price movement

Flowers Foods (FLO) has a market cap of $3.3 billion. It fell by 9.0% to close at $16.15 per share on August 10, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -9.0%, -14.1%, and -23.6%, respectively, on the same day.

FLO is trading 12.2% below its 20-day moving average, 12.2% below its 50-day moving average, and 18.1% below its 200-day moving average.

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Related ETFs and peers

The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 0.49% of its holdings in Flowers Foods. The ETF tracks a market-cap-weighted index of growth companies culled from the S&P 400. The YTD price movement of IVOG was 10.4% on August 10.

The SPDR S&P 400 Mid-Cap Growth ETF (MDYG) invests 0.49% of its holdings in Flowers Foods. The ETF tracks a market-cap-weighted index of growth companies culled from the S&P 400.

The market caps of Flowers Foods’ competitors are as follows:

  • Campbell Soup Company (CPB) — $19.0 billion
  • Panera Bread Company (PNRA) — $5.2 billion

Latest news on Flowers Foods

Pomerantz LLP, Levi & Korsinsky, Glancy Prongay & Murray LLP, Goldberg Law PC, and Lundin Law PC are investigating claims against Flowers Foods over possible violations of federal securities laws by the company and its officers and directors.

According to the press release on August 10, 2016, “The investigation concerns the company’s August 10, 2016, disclosure that the US Department of Labor has scheduled a compliance review of Flower Foods under the Fair Labor Standards Act.”

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Performance of Flowers Foods in fiscal 2Q16

Flowers Foods reported fiscal 2Q16 sales of $935.0 million, a rise of 5.2% compared to sales of $888.8 million in fiscal 2Q15 due to the acquisitions of Dave’s Killer Bread (DKB) and Alpine Valley Bread. Sales from direct-store-delivery and warehouse delivery rose by 4.5% and 9.1%, respectively, in fiscal 2Q16 compared to fiscal 2Q15.

It reported pension plans settlement loss of $4.6 million in fiscal 2Q16. The company’s income from operations rose by 1.8% in fiscal 2Q16 compared to the prior year period.

Its net income fell to $51.2 million in fiscal 2Q16 compared to $51.8 million in fiscal 2Q15. It reported EPS of $0.24 in fiscal 2Q16 and fiscal 2Q15. It reported adjusted EBITDA[1. earnings before interest, tax, depreciation, and amortization] and adjusted EPS of $118.7 million and $0.26, respectively, in fiscal 2Q16. This was a rise of 5.2% and 4.0%, respectively, compared to fiscal 2Q15.

Projections

Flowers Foods has made the following projections for fiscal 2016:

  • Sales in the range of $3,930,000–$3,986,000
  • EPS in the range of $0.88–$0.93
  • Adjusted EPS in the range of $0.90–$0.95

This projection includes increased competitiveness in the market and weak volumes.

Now we’ll discuss how Michael Kors Holdings (KORS) performed in fiscal 1Q17.

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