Flowers Foods Q2 Profit Decreases; Revises FY14 Guidance - Quick Facts

(RTTNews) - Flowers Foods, Inc. (FLO) reported that its second-quarter net income decreased to $42.06 million or $0.20 per share from $46.46 million or $0.22 per share, last year. Adjusted for the asset impairment in the quarter, net income per share was $0.21.

On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $0.24 for the quarter. Analysts' estimates typically exclude special items. Sales decreased to $877.38 million from $898.15 million, last year. Analysts expected revenue of $940.83 million for the quarter. The company said the decrease was attributable to positive net price/mix of 0.6% and decreased volume of 2.9%.

Allen Shiver, president and CEO, 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. We also are seeing strong sequential growth in our acquired bread brands. As a team, we are working to control those issues within our reach while maintaining a strong, flexible financial position to weather near-term challenges."

The company gave revised guidance for fiscal 2014. Sales for the year are now expected to be in the range of $3.88 billion to $3.94 billion. Adjusted earnings per share, excluding the asset impairment, are now expected to be in the range of $0.92 to $0.98. Previously, guidance was for 2014 sales of $3.976 billion to $4.126 billion, and earnings per share of $0.98 to $1.05. Analysts expect the company to report fiscal 2014 earnings per share of $1.02 on revenue of $3.99 billion.

The board of Flowers Foods will review the dividend at its next regularly scheduled meeting.