uploads///FLO

How Has Flowers Foods Stock Performed in 2018?

By

Aug. 2 2018, Updated 9:01 a.m. ET

Stock is up 5.6%

As of July 30, Flowers Foods (FLO) stock had risen 5.6% to $20.39 on a YTD (year-to-date) basis.

In comparison, TreeHouse Foods (THS) has fallen 3.6%, while the Campbell Soup Company (CPB) has fallen 14.9% YTD. J&J Snack Foods (JJSF) has risen 1.2% on a YTD basis as of July 30. In comparison, the S&P 500 Index has risen 4.8% YTD.

Article continues below advertisement

What lies ahead?

Flowers Foods is scheduled to report its second-quarter results on August 8. The stock’s price movements could see a boost, as analysts’ projections are positive. Flowers Foods is expected to witness sales growth of 1.0% to $933.1 million and adjusted EPS growth of 16.7% to $0.28 in the quarter. Dave’s Killer Bread continues to witness robust demand and is expected to drive sales. Its EPS will likely be cushioned by a lower tax rate and cost-cutting measures.

Flowers Foods is focusing on innovation, acquisitions, the improvement of its share in underpenetrated markets, and its underperforming snack business. The company is enhancing its presence in the dinner roll and breakfast segments, where the Dave’s Killer Bread and Nature’s Own brands are performing well.

Nonetheless, the company has cautioned that it’s likely to face $40 million worth of increases in commodity costs in 2018 due to cost inflation. To combat this inflation, the company is streamlining its supply chain and right-sizing its operations under Project Centennial. Apart from these innovations, the company will be reinvesting part of its savings in the promotion of its brands to drive sales.

For 2018, FLO’s management expects its sales to be in the range of ~$3.92 billion–$3.98 billion, which represents growth of 0.0%–1.6% on a YoY (year-over-year) basis. Its adjusted EPS are expected to be in the range of $1.04–$1.16, reflecting a rise of 16.9%–30.3% on a YoY basis.

Advertisement

More From Market Realist

  • A "now hiring" sign outside a Popeyes restaurant, one sign that employers are having trouble finding employees willing to work for current wages.
    Consumer
    Why Employers Are Struggling To Fill Jobs Despite High Unemployment
  • Beyond Meat patties in a grocery cart
    Consumer
    Buying the Dip on Beyond Meat (BYND) Stock Is a Risky Move
  • People looking at data on a laptop
    Consumer
    Is Driven Brands (DRVN) a Good Stock to Buy? A Look at the Year Ahead
  • A Moscow Mule drink made with Reed's
    Consumer
    Is Reed's (REED) a Good Stock to Buy? A Look at the Year Ahead
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.