Flowers Foods Gearing Up for Q4 Earnings: What to Expect From FLO?

Flowers Foods, Inc. FLO is likely to register bottom-line growth when it reports fourth-quarter fiscal 2024 earnings on Feb. 7. The consensus mark for earnings has remained unchanged in the past 30 days at 21 cents per share, which suggests an increase of 5% from the figure reported in the year-ago quarter. FLO has a trailing four-quarter earnings surprise of 3.5%, on average.The Zacks Consensus Estimate for revenues is pegged at $1.13 billion, almost in line with the prior-year quarter’s reported figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Flowers Foods, Inc. Price, Consensus and EPS Surprise Flowers Foods, Inc. price-consensus-eps-surprise-chart | Flowers Foods, Inc. QuoteFLO: Key Factors to WatchFlowers Foods has been benefiting from its strategic priorities, especially concentrating on brands and prioritizing margins. The company’s focus on innovation and product differentiation has been successful in capturing consumer interest and expanding market share in adjacent categories.On its third-quarter earnings call, management stated that the keto loaf had gained an impressive 730 basis points in unit share and 770 basis points in dollar share, making it one of the fastest-growing products in its subcategory. The company then informed that it is set to capitalize on this momentum with the national launch of keto hamburger buns in late 2024. Flowers Foods has been adhering to its objectives, which include executing its portfolio strategy by exiting the low-margin business and replacing it with a margin-accretive new business, enhancing its cost structure, investing in its brands to drive volume and share gains and enhancing the product mix, utilizing technology to improve data visibility and make better strategic decisions and investing in its team to enhance overall execution. These efforts are likely to have contributed to the company’s performance in the quarter under review.However, a challenging consumer environment marked by shifts in spending behavior and heightened promotional activity may have impacted performance. Flowers Foods has been forced to increase promotions to maintain its competitive position, which remains a threat to margins. The cake category remains a challenge, reflecting evolving consumer preferences that are shifting away from traditional offerings. With consumers prioritizing at-home dining, the foodservice channel has been facing demand erosion. Our model suggests a 0.7% dip in volumes in the fourth quarter.Input cost inflation is another concern, though the company’s saving and pricing efforts have been a respite. We expect the price/mix to be up 0.7% in the quarter under review. Earnings Whispers for FLO StockOur proven model doesn’t conclusively predict an earnings beat for Flowers Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. Flowers Foods carries a Zacks Rank #3 and has an Earnings ESP of -0.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Some Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.The Coca-Cola Company KO currently has an Earnings ESP of +0.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.69 billion, which indicates a decrease of 1.5% from the figure reported in the prior-year quarter.The Zacks Consensus Estimate for Coca-Cola’s fourth-quarter 2024 EPS is pegged at 51 cents, which implies a 4.1% increase year over year. KO has a trailing four-quarter earnings surprise of 3.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.Kellanova K currently has an Earnings ESP of +0.69% and a Zacks Rank of 3. The company is likely to register bottom-line growth when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for Kellanova’s quarterly earnings per share is pegged at 82 cents, indicating 5.1% growth from the year-ago period. K has a trailing four-quarter earnings surprise of 10.9%, on average.The Zacks Consensus Estimate for Kellanova’s quarterly revenues is pegged at $3.09 billion, which suggests a decrease of 2.6% from the prior-year quarter.WK Kellogg KLG currently has an Earnings ESP of +14.85% and a Zacks Rank of 3. The company is likely to register a decline in its top line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for WK Kellogg’s quarterly revenues is pegged at $642.9 million, which suggests a decrease of 1.2% from the prior-year quarter.The Zacks Consensus Estimate for WK Kellogg’s quarterly earnings per share is pegged at 25 cents, indicating a 38.9% increase from the year-ago period. KLG delivered an earnings surprise of 19.2% in the last reported quarter.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report Kellanova (K): Free Stock Analysis Report Flowers Foods, Inc. (FLO): Free Stock Analysis Report WK Kellogg Co. (KLG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks