Flowers Foods Drops 8% On Decreased Outlook, Below Consensus View

(RTTNews) - Shares of bakery foods producer Flowers Foods, Inc. (FLO) are falling more than 8% Friday morning after the company lowered its outlook for fiscal 2023.

"We are adjusting our outlook for fiscal 2023 to account for the slow start to the year and lower-than-expected branded retail sales due to softer category demand," commented Flowers Foods' CEO.

For the full year, the company now sees sales in the range of $5.086 billion - $5.141 billion, lower than the prior outlook of $5.176 billion - $5.242 billion. Analysts on average polled by Thomson-Reuters are looking for sales of $5.18 billion for the year.

Adjusted EPS for the year are expected between $1.15 and $1.25 compared with $1.20 to $1.30 provided earlier. The consensus estimate stands at $1.25.

In addition, net income in the first quarter decreased to $70.71 million or $0.33 per share from $85.59 million or $0.40 per share in the same quarter a year ago. Excluding one-time items, earnings were $0.38 per share.

FLO is at $26.47. It has traded in the range of $24.15 - $30.16 in the last 1 year.