Stock Analysis

Flowers Foods, Inc. Just Beat EPS By 6.2%: Here's What Analysts Think Will Happen Next

Published
NYSE:FLO

Shareholders might have noticed that Flowers Foods, Inc. (NYSE:FLO) filed its quarterly result this time last week. The early response was not positive, with shares down 3.0% to US$21.56 in the past week. The result was positive overall - although revenues of US$1.2b were in line with what the analysts predicted, Flowers Foods surprised by delivering a statutory profit of US$0.31 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Flowers Foods

NYSE:FLO Earnings and Revenue Growth November 12th 2024

Taking into account the latest results, Flowers Foods' seven analysts currently expect revenues in 2025 to be US$5.21b, approximately in line with the last 12 months. Statutory earnings per share are predicted to ascend 13% to US$1.29. Before this earnings report, the analysts had been forecasting revenues of US$5.23b and earnings per share (EPS) of US$1.28 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$24.00. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Flowers Foods at US$30.00 per share, while the most bearish prices it at US$20.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Flowers Foods shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Flowers Foods' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.3% growth on an annualised basis. This is compared to a historical growth rate of 5.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.8% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Flowers Foods.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Flowers Foods' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$24.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Flowers Foods. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Flowers Foods going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Flowers Foods that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.