Flowers Foods, Inc. (NYSE:FLO) Just Reported, And Analysts Assigned A US$22.29 Price Target

Shareholders might have noticed that Flowers Foods, Inc. (NYSE:FLO) filed its yearly result this time last week. The early response was not positive, with shares down 2.4% to US$19.09 in the past week. Flowers Foods reported in line with analyst predictions, delivering revenues of US$5.1b and statutory earnings per share of US$1.17, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Flowers Foods

Taking into account the latest results, the most recent consensus for Flowers Foods from seven analysts is for revenues of US$5.31b in 2025. If met, it would imply a modest 4.1% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 7.1% to US$1.10 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.22b and earnings per share (EPS) of US$1.29 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

It might be a surprise to learn that the consensus price target fell 5.2% to US$22.29, with the analysts clearly linking lower forecast earnings to the performance of the stock price. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Flowers Foods, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$18.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Flowers Foods'historical trends, as the 4.1% annualised revenue growth to the end of 2025 is roughly in line with the 4.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.4% per year. So although Flowers Foods is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Flowers Foods' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Flowers Foods going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Flowers Foods (at least 1 which is significant) , and understanding these should be part of your investment process.

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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.