Flowers Foods (NYSE:FLO) Announces Earnings Results, Misses Estimates By $0.01 EPS

Flowers Foods (NYSE:FLO) announced its earnings results on Thursday. The company reported $0.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.01), FiscalAI reports. The company had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.23 billion. Flowers Foods had a return on equity of 15.98% and a net margin of 1.38%.The company’s revenue was down 4.0% compared to the same quarter last year. During the same period last year, the firm posted $0.28 EPS. Flowers Foods updated its FY 2026 guidance to 0.750-0.850 EPS.

Here are the key takeaways from Flowers Foods’ conference call:

• Second-quarter results missed expectations: net sales fell 4%, volume declined 5.8%, adjusted EBITDA dropped 19% to $111 million, and adjusted diluted EPS decreased to $0.21 from $0.30.
• Flowers Foods lowered its full-year 2026 outlook, now expecting net sales of $5.07 billion-$5.142 billion, adjusted EBITDA of $453 million-$481 million, and adjusted diluted EPS of $0.75-$0.85, reflecting persistent consumer pressure and competitive intensity.
• Several growth areas showed momentum, including Simple Mills, where retail sales rose 13%, cookies grew 39%, and crackers increased 8%; Nature’s Own Perfectly Crafted sales also grew more than 8%, while Wonder Cake gained 60 basis points of unit share.
• Management expects cost actions to generate approximately $9 million of savings in the remainder of 2026 and about $20 million in annualized run-rate savings after implementation, despite one-time costs of approximately $6 million-$9 million.
• The company paid down roughly $70 million of debt year to date and secured a new $400 million delayed-draw facility to fully de-risk its October 2026 bond maturity, while continuing to fund dividends and invest in brands and innovation.

Flowers Foods Trading Down 4.4%

Shares of FLO opened at $7.13 on Friday. Flowers Foods has a 1 year low of $6.80 and a 1 year high of $15.98. The company has a current ratio of 0.77, a quick ratio of 0.57 and a debt-to-equity ratio of 1.02. The stock has a 50 day simple moving average of $7.80 and a 200-day simple moving average of $8.44. The stock has a market cap of $1.51 billion, a PE ratio of 20.37 and a beta of 0.40.

Analyst Ratings Changes

Several analysts have issued reports on FLO shares. Stephens decreased their price target on shares of Flowers Foods from $11.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Monday, May 18th. Zacks Research upgraded shares of Flowers Foods from a “strong sell” rating to a “hold” rating in a research note on Thursday, May 21st. Wall Street Zen downgraded Flowers Foods from a “buy” rating to a “hold” rating in a research report on Sunday, May 3rd. Jefferies Financial Group set a $7.00 price target on Flowers Foods in a research note on Monday, August 3rd. Finally, Weiss Ratings downgraded Flowers Foods from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, August 13th. Four analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $8.00.

Key Stories Impacting Flowers Foods

Here are the key news stories impacting Flowers Foods this week:

• Positive Sentiment: Pricing and product mix improved 1.8%, and several institutional investors increased their holdings in the second quarter. BlackRock added approximately 14.6 million shares, while FMR and Quantinno Capital also reported sizable increases. Flowers Foods Q2 Sales Fall 4% as Net Income Drops 30%
• Positive Sentiment: Chief Financial Officer Diego Scaglione purchased 5,000 FLO shares, which may signal some insider confidence despite the weak quarter. However, CEO Ryals McMullian sold 209,000 shares during the past six months. Flowers Foods Q2 Sales Fall 4% as Net Income Drops 30%
• Neutral Sentiment: Flowers Foods maintained fiscal 2026 adjusted diluted EPS guidance of $0.75 to $0.85, but the range is centered near the analyst consensus of $0.83, leaving limited evidence of an earnings upside surprise.
• Negative Sentiment: Second-quarter revenue fell 4.0% year over year to $1.193 billion, below the approximately $1.23 billion analyst estimate. Adjusted EPS was $0.21, versus consensus estimates ranging from $0.22 to $0.23, and down from $0.28 a year earlier. Flowers Foods Lags Q2 Earnings and Revenue Estimates
• Negative Sentiment: Operating trends weakened: product volume declined 5.8%, net income dropped 30.3% to $40.7 million, and adjusted EBITDA decreased 19.2% to $111.3 million. Both Branded Retail and Other sales declined. Flowers Foods Misses on Both Lines as Bread Volumes Slide 5.8%
• Negative Sentiment: Fiscal 2026 sales guidance of approximately $5.070 billion to $5.142 billion is below the roughly $5.2 billion consensus estimate, reinforcing concerns about continued volume weakness and margin pressure. Flowers Foods Reports Second Quarter 2026 Results

Insider Buying and Selling

In related news, CFO Diego Anthony Scaglione purchased 5,000 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were acquired at an average price of $7.51 per share, with a total value of $37,550.00. Following the purchase, the chief financial officer directly owned 194,180 shares in the company, valued at $1,458,291.80. This represents a 2.64% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. 7.23% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Wilmington Savings Fund Society FSB increased its position in shares of Flowers Foods by 225.6% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 2,400 shares of the company’s stock worth $31,000 after purchasing an additional 1,663 shares in the last quarter. Geneos Wealth Management Inc. grew its stake in Flowers Foods by 64.4% during the second quarter. Geneos Wealth Management Inc. now owns 2,555 shares of the company’s stock worth $41,000 after buying an additional 1,001 shares during the last quarter. Advisory Services Network LLC bought a new stake in Flowers Foods during the third quarter worth about $58,000. Kestra Advisory Services LLC acquired a new stake in shares of Flowers Foods during the fourth quarter worth approximately $68,000. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Flowers Foods by 140.7% in the second quarter. EverSource Wealth Advisors LLC now owns 5,061 shares of the company’s stock valued at $81,000 after acquiring an additional 2,958 shares during the last quarter. 75.45% of the stock is owned by institutional investors.

Flowers Foods Company Profile

Flowers Foods, Inc is one of the largest producers of packaged bakery foods in the United States, offering a variety of fresh bread, buns, rolls, snack cakes and tortillas. Headquartered in Thomasville, Georgia, the company operates an extensive network of bakeries and distribution centers that serve retail grocery chains, convenience stores, mass merchandisers and foodservice customers nationwide. Flowers Foods markets its products under well-known brands such as Nature’s Own, Wonder, Dave’s Killer Bread, Mrs.