Preview: Flowers Foods's Earnings

Flowers Foods FLO will be releasing its next round of earnings this Thursday, May 20. For all of the relevant information, here is your guide for Thursday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, Flowers Foods analysts model for earnings of $0.39 per share on sales of $1.33 billion. In the same quarter last year, Flowers Foods reported EPS of $0.41 on revenue of $1.35 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 4.88% decrease in the company's earnings. Sales would be down 1.41% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 8.19%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Flowers Foods is scheduled to hold the call at 08:30:00 ET and can be accessed here.