Flowers Foods Reaffirms 2016 Outlook, Revises Long-Term Guidance

Flowers Foods, Inc. FLO, a producer of a line of bakery products, hosted an investor day presentation on Wednesday.

As part of the presentation, Flowers Foods' management reaffirmed its 2016 guidance and expects total sales to be in a range of $3.986 billion to $4.090 billion, represent 5.5 percent to 8.0 percent year-over-year growth. Full year earnings per share expectations also remain unchanged at $0.98 to $1.04, representing a growth of 6.5 percent to 13.0 percent.

Wall Street analysts were projecting the company to earn $1.01 per share on revenue of $3.99 billion.

Flowers Foods' also revised its long-term outlook and expects sales growth of 2 percent to 4 percent beyond 2016 (excluding acquisitions), EBITDA margin of 12 percent to 14 percent, and earnings per share of 8 percent to 10 percent.

Flowers Foods expects its long-term guidance to deliver total shareholder returns in excess of 10 percent.

"Going forward, we are focused on developing our existing geographic footprint, driving growth from our organic brands and other underdeveloped segments, and improving promotional and operational efficiencies," Allen Shiver, Flowers Foods president and CEO. "While our revised long-term targets now exclude acquisitions, M&A will continue to be an important part of our growth strategy as we seek to identify opportunities that expand our margins and enhance our brand portfolio."

Shares of Flowers Foods were trading higher by 0.22 percent late Wednesday morning.

Posted In: NewsGuidanceAllen Shiverflowers foodsFood Companiesfood stocks
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