What Happened?
Shares of packaged bakery food company Flower Foods (NYSE:FLO) fell 3.6% in the morning session after the company reported second-quarter results that missed revenue expectations and lowered its full-year guidance. The bakery products company reported second-quarter revenue of $1.24 billion, which fell short of analyst forecasts of $1.27 billion, while its adjusted earnings per share of $0.30 was in line with expectations. The main concern for investors was the company's decision to trim its full-year guidance. Flowers Foods now expects full-year revenue of approximately $5.27 billion and adjusted earnings of around $1.05 per share, both at the midpoint. This is a reduction from its previous revenue forecast midpoint of $5.35 billion. The lowered outlook reflects challenges the company is facing, including a 2.4% drop in sales volumes during the quarter as consumers bought less of its products.
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What Is The Market Telling Us
Flowers Foods’s shares are not very volatile and have had no moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Flowers Foods is down 22.9% since the beginning of the year, and at $15.84 per share, it is trading 33.4% below its 52-week high of $23.77 from September 2024. Investors who bought $1,000 worth of Flowers Foods’s shares 5 years ago would now be looking at an investment worth $639.54.
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