Shares of Flowers Foods, Inc. (NYSE:FLO) fell -7.43% to reach at $14.95 during the course of session. The company has experienced volume of 17.79M shares while on average the company has a capacity of trading 2.09M shares.
Flowers Foods, Inc. (NYSE:FLO) on August 11, 2016 reported financial results for the company’s 12-week second quarter ended July 16, 2016.
Revised Fiscal 2016 Guidance
Due to increased competitive activity and weak category volumes, the company lowered its outlook for fiscal 2016 sales, diluted EPS, and adjusted diluted EPS. Sales are now expected to be in the range of $3.930 billion to $3.986 billion, representing growth of approximately 4.0% to 5.5% over fiscal 2015 reported sales of $3.779 billion. EPS is now expected to be in the range of $0.88 to $0.93, representing a change of approximately -1.1% to +4.5% over fiscal 2015 EPS of $0.89. Adjusted EPS is now expected to be in the range of $0.90 to $0.95, representing a change of approximately -2.2% to +3.3% over fiscal 2015 adjusted EPS of $0.92.
Commenting on the revised guidance, Shiver said, “Our revised guidance takes into consideration soft consumer demand in the bakery category, as well as heightened promotional activity in our industry. The Flowers team has significant experience successfully navigating periods of heightened promotional activity like we are currently seeing, and we have already taken steps to address underperforming markets and improve profitability. Those markets have begun steady improvement, and as sales grow, the company expects to leverage costs and realize efficiencies.
Project Centennial: Comprehensive Business and Operational Review
Recognizing the challenges facing food companies today, the company has teamed with Accenture and launched Project Centennial, an enterprise-wide business and operational review. Through this project, Flowers is evaluating opportunities to enhance revenue growth, streamline operations, drive efficiencies, and make investments that strengthen its competitive position and improve margins over the long term. The project is in its early stages, and the company expects to provide additional information and details later in the year.
Consolidated Second Quarter 2016 Results Commentary
Consolidated sales for the quarter were $935.0 million, an increase of 5.2% compared to the prior year second quarter. Of Flowers’ consolidated sales increase, acquisitions contributed 5.6%, pricing/mix decreased 0.5%, and volume increased 0.1%.
Consolidated net income for the quarter was $51.2 million, a decrease of 1.2%. Adjusted net income was $54.0 million, an increase of 1.5%.
When compared to the prior year, net income and adjusted net income were positively affected by the increase in adjusted EBITDA. Negatively impacting net income and adjusted net income was the increase in depreciation and amortization expense, the increase in net interest expense, and increased certain litigation and consulting costs. Additionally, net income was affected by a pension settlement loss this year and an asset impairment last year.
Flowers Foods, Inc. (NYSE:FLO) holds the market capitalization of $2.81B along with 206.87M outstanding shares. The stock traded in the price range of $14.35 – $15.65 for the last trading session. For the stock, price target value has been calculated at $18.50 based on calls of 6 experts. Stock’s minimum price target estimates has been figured out at $8.00 while the maximum price target forecast is established at $23.00.
As of current trade, Flowers Foods, Inc. (NYSE:FLO) has shown weekly downbeat performance of -15.15%. Its six months performance indicated a bearish movement while its yearly performance reflected a negative trend of -30.09%. Year-to-date (YTD) performance of the stock illustrate downbeat trend of -29.23%. Shares of Flowers Foods, Inc. (NYSE:FLO) currently have an ABR of 2.60, derived from a total of 5 opinions. The company’s price sits -18.47% below from its 50-day moving average of $18.26 and -24.00% below from the stock’s 200-day moving average of $18.44. The company has Relative Strength Index (RSI 14) of 21.00 along with Average True Range (ATR 14) of 0.57. Its weekly and monthly volatility is 4.49%, 2.64% respectively. The company’s beta value is at 0.66.
Flowers Foods, Inc. (NYSE:FLO)’s price to sales ratio for trailing twelve months is 0.80 and price to book ratio for most recent quarter is 2.72, whereas price to cash per share for the most recent quarter is 267.83. Flowers Foods, Inc. (NYSE:FLO)’s price to free cash flow for trailing twelve months is 28.31. Its quick ratio for most recent quarter is 0.70 along with current ratio for most recent quarter of 1.10. Total debt to equity ratio of the company for most recent quarter is 0.92 whereas long term debt to equity ratio for most recent quarter is 0.83. Flowers Foods, Inc. (NYSE:FLO) has a Return on Assets of 6.90%. The company currently has a Return on Equity of 15.50% and Return on Investment of 8.30%.