Why is Flowers Foods Inc (FLO) Stock down?
Flowers Foods, Inc. Stock (FLO) dropped by 6.90% from $22.16 to $20.63 in the trading on Friday November 10, 2023. The reasons why FLO stock down today include:
- Net loss: Flower Foods incurred a net loss of $46.7 million as a result of settling a class action lawsuit in California. This settlement led to a roughly 3% decrease in the company's earnings per share (EPS).
- Products volume: Due to higher prices, Flower Foods has observed that people are choosing cheaper baked goods instead of the more expensive branded ones. As a result, the company's overall sales volume declined by 4.1% compared to the same period last year in Q3.
- Full-year guidance: Flower Foods originally expected sales between $5.095 - $5.141 billion, but now it predicts sales in the range of $5.085 - $5.104 billion. The more significant change is in the company's earnings per share (EPS) guidance. Initially, it foresaw full-year diluted EPS between $1.18 - $1.25, but now it anticipates a lower range of $0.60 - $0.67 due to the settlement costing more than initially estimated.
FLO's stock fell 9.88% after the parent of baked goods brands like Tastykake, Wonder Bread, and Dave's Killer Bread cut its full-year guidance in its first-quarter earnings report. Flowers said that revenue in the first quarter rose 6.9% to $1.534 billion, a record for that quarter but slightly below estimates at $1.55 billion. However, inflation ate into the company's profits, and gross margin fell 170 basis points to 46.2%. That led to a decline in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 8.7% to $151.1 million.
https://www.fool.com/investing/2023/05/19/why-flowers-foods-stock-was-falling-today/