Flowers Foods Lowers 2016 Outlook - Quick Facts

(RTTNews) - Flowers Foods, Inc. (FLO) announced, due to increased competitive activity and weak category volumes, the company lowered its outlook for fiscal 2016 sales, EPS, and adjusted EPS. Sales are now expected to be in the range of $3.930 billion to $3.986 billion, EPS is now expected to be in the range of $0.88 to $0.93, and adjusted EPS is now expected to be in the range of $0.90 to $0.95. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.00 on revenue of $3.99 billion. Analysts' estimates typically exclude special items.

Allen Shiver, Flowers Foods CEO, stated: "Our revised guidance takes into consideration soft consumer demand in the bakery category, as well as heightened promotional activity in our industry. 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."

Flowers Foods has teamed with Accenture and launched Project Centennial, an enterprise-wide business and operational review. Through this project, the company is evaluating opportunities to enhance revenue growth, streamline operations, drive efficiencies, and make investments.

Consolidated sales for the second-quarter were $935.0 million, an increase of 5.2% compared to the prior year. 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%.