UPDATE: Flowers Foods Posts Downbeat Q2 Results, Shares Tumble

Shares of Flowers Foods

dipped more than 10% in pre-market trading after the company reported downbeat second-quarter results. The Thomasville, Georgia-based company posted quarterly net income of $42.1 million, or $0.20 per share, down from $46.5 million, or $0.22 per share, in the year-ago period. Its adjusted profit declined to $45 million, or $0.21 per share, versus $50.1 million, or $0.24 per share. Its sales slipped 2.3% to $877.4 million from $898.2 million. However, analysts were expecting earnings of $0.24 per share on revenue of $940.83 million. Direct-Store-Delivery segment sales came in flat versus last year, while sales of branded breads, buns, and rolls rose 3.1%. Warehouse segment sales declined 13.3% in the quarter. EBITDA declined to $95.3 million, from $100.6 million. During the quarter, cash flow from operating activities came in at $51.1 million. For the full year, Flowers Foods now projects adjusted earnings of $0.92 to $0.98 per share on sales of $3.88 billion to $3.94 billion. Analysts expected earnings of $1.02 per share on sales of $3.98 billion. Allen L. Shiver, president and chief executive officer, said, "Although the second quarter was challenging, we remain confident in our long-term growth strategies. We are particularly encouraged by the traction we are continuing to see in our new markets, where sales doubled since last year.” Flowers Foods shares tumbled 10.09% to $17.99 in pre-market trading.