Flowers Foods Delivers Tasty Q3 Earnings

by: Zacks.com November 13, 2008 | about stocks: FLO    

Zacks.com

About this author:
Become a Contributor Submit an Article
  • Font Size:
  • Print

Flowers Foods, Inc. (FLO) recently announced third-quarter earnings of 29 cents per share, surpassing the previous year’s 24 cents and beating the consensus estimate by a penny. Sales jumped 21% on a year-over-year basis.

Company Description

Flowers Foods produces and markets packaged bakery foods for retail and foodservice customers. Among the company's top brands are Nature's Own, Cobblestone Mill, Sunbeam, Blue Bird, and Mrs. Freshley's. Flowers Foods produces, markets, and distributes fresh bakery products that are delivered to customers daily through a direct-store-delivery system serving the Southeast, Southwest, and Mid-Atlantic. The company also produces and distributes fresh snack cakes and frozen breads and rolls nationally through warehouse distribution.

Quarterly Results Reflect Solid Growth

The company recently announced third-quarter earnings of 29 cents per share, surpassing the previous year’s 24 cents and beating the consensus estimate by a penny. Sales jumped 21% on a year-over-year basis.

"Sales across all categories remain strong, and we are on track to continue expanding our geographic footprint, deliver profitable growth, and drive product innovation," said George E. Deese, Chairman of the Board, Chief Executive Officer, and President. "Our performance in the quarter again demonstrates the strength of our brands and our team's ability to execute well in the marketplace."

Higher Earnings Estimates

The company hiked its guidance for the year, forecasting earnings per share to be $1.22 to $1.26. Analysts are projecting $1.23 per share, which is an increase from last week’s estimate of $1.20.

Favorable Industry Comparisons

Flowers Foods offers a return on equity [ROE] of 16%, exceeding the industry average of 9%. The company’s dividend yield of 2.3% stands out as most of FLO’s industry peers pay no dividend. FLO’s earnings per share are expected to grow by 11% over the next 3-5 years, versus the industry average of 9%.

Related Articles

This article has 2 comments:

  •  
    Nov 13 07:51 AM
    The company has generated zero free cash flow in the last twelve months, casting doubt on the quality of the reported earnings. And at 25x EPS, there is no room for error. This is a $20 stock at best.
    Reply | Link to Comment
  •  
    Nov 13 04:57 PM
    Just checked Yahoo finance... I show them as growing earnings and sales yoy and as having a positive $30 Million in cash flow, based on Oct 4, 2008 reporting. Figuring that energy costs are dropping and maybe ingredients dropping as recession moves forward, for a bakery, they seem to be doing pretty well.

    Having said that the stock price seems to move up and down with the market, so I don;t see any point in buying it when a Ultra ETFs are easier to deal with.

    anyway.. Nice analysis .. jegan

    jegan
    Reply | Link to Comment
More Comments on FLO »
Top Rated Comment Streams:

Numbers are net rating-

See all Top 100 »
More by Zacks.com

Investment Resources
Money Management
Research
Seeking Alpha provides these ads as a service to its leading contributors
Articles on related themes
Long Ideas
Earnings
Food & Restaurants
Apparel & Footwear