Flowers Foods Q1 Profit Misses Estimates

reported weaker-than-expected earnings for the first quarter on Thursday. The Thomasville, Georgia-based company reported a quarterly profit of $61.4 million, or $0.29 per share, compared to $61.1 million, or $0.29 per share, in the year-ago period. Its revenue declined 0.7 percent year-over-year to $1.15 billion. However, analysts were expecting earnings of $0.30 per share on revenue of $1.16 billion. The average estimate among 5 Estimize users was for a loss of $0.31 per share and revenue of $1.17 billion. Its EBITDA slipped 0.8 percent to $136 million in the quarter. During the quarter, Flowers Foods repurchased around 0.3 million shares for $6.9 million. Allen L. Shiver, president and chief executive officer, said, "So far, we are encouraged with the results we are seeing in the second quarter and we are looking forward to what's ahead in fiscal 2015. We have some new business wins coming on line and, relative to last year, we see lower input costs and higher manufacturing efficiencies. To support growth in our expansion markets, we'll be opening our new bakery in Lenexa, Kansas this summer. To grow sales in our core markets we are introducing new products under our Cobblestone Bread Company and Tastykake brands. Through a combination of organic growth and strategic acquisitions, we expect to achieve our long-term goals and deliver value to shareholders." For the full year, Flowers Foods projects earnings of $0.96 to $1.01 per share, on revenue of $3.786 billion to $3.861 billion. Analysts had expected earnings of $0.97 per share on revenue of $3.79 billion. Flowers Foods shares closed at $23.08 yesterday.