
Core Viewpoint - Flowers Foods, Inc. reported weaker-than-expected second-quarter sales and issued its second consecutive guidance cut, leading analysts to lower forecasts and highlight ongoing challenges in the category [1][3] Financial Performance - The company reported an adjusted EPS of 30 cents, meeting consensus, but sales of $1.242 billion fell short of Wall Street estimates. Net income decreased nearly 13%, and adjusted EBITDA declined by 4% [5] - Flowers Foods cut its full-year EPS outlook to $1.00–$1.10 and lowered its sales guidance to $5.021–$5.083 billion, both below market expectations [6] Analyst Insights - Truist Securities analyst Bill Chappell reduced his 12-month price forecast to $15 from $20, reiterating a Hold rating, and lowered sales and earnings estimates through fiscal year 2027 due to inconsistent execution and increasing private label competition [1][2] - DA Davidson analyst Brian Holland expressed caution, noting that the back-to-back guidance cuts reflect rising consumer and competitive pressures that have not been mitigated by innovation or acquisitions [3][4] - Holland projected fiscal year 2025 EBITDA of $512–$538 million and sales of $5.239–$5.308 billion, both reduced from previous forecasts, highlighting execution risks and reliance on packaged bakery products [4]