Flowers Foods' Q2 Earnings on Deck: What Surprise Awaits Investors?

Flowers Foods, Inc. (FLO) is likely to register top-line growth when it reports second-quarter 2025 earnings on Aug. 15. The Zacks Consensus Estimate for revenues is pegged at $1.27 billion, which indicates an increase of 3.6% from the figure reported in the year-ago quarter.

The consensus mark for earnings has moved down a penny in the past 30 days to 29 cents per share, which indicates a plunge of 19.4% from the prior-year quarter’s reported figure. FLO delivered a trailing four-quarter earnings surprise of 4%, on average.

FLO’s Q2 Earnings: Key Factors to Watch

Flowers Foods is focused on core priorities, including developing its team, concentrating on brands, prioritizing margins, strategic innovations, and making prudent mergers and acquisitions. FLO is executing its portfolio strategy by exiting low-margin businesses and replacing them with margin-accretive opportunities alongside enhancing its cost structure.

The company is investing in its brands to drive volume and share gains, improving its product mix, and leveraging technology to boost data visibility for better strategic decisions. Management has been shifting its focus toward becoming a more brand-focused company. Such efforts are likely to have contributed to the company’s performance in the quarter under review.

However, the company’s fiscal second-quarter results are likely to reflect the effects of a challenging consumer environment marked by shifts in spending behavior and higher costs stemming from elevated promotional activity. Higher selling, distribution and administrative expenses owing to higher workforce-related expenses and acquisition-related costs are added deterrents. Flowers Foods continues to face headwinds in categories, including traditional bread, cake and private label.

Persistent category weakness is likely to have weighed on the upcoming quarter's performance. Such limitations, along with a volatile landscape including potential tariffs, commodity volatility and dull consumer demand, are likely to have weighed on the company’s performance. Our model indicates a 2% dip in overall volumes for the second quarter.

Earnings Whispers for FLO Stock

Our proven model does not conclusively predict an earnings beat for Flowers Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Flowers Foods currently has an Earnings ESP of -1.49% and a Zacks Rank #4 (Sell). You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

The Estée Lauder Companies Inc. (EL) currently has an Earnings ESP of +36.11% and a Zacks Rank of 3. The company is likely to register declines in the top and bottom lines when it reports fourth-quarter 2025 numbers. The consensus mark for revenues is pegged at $3.4 billion, which indicates a decrease of 12.2% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for EL’s quarterly earnings per share of eight cents implies a sharp decline from 64 cents per share reported in the year-ago quarter. The consensus mark has gone up two cents in the past 30 days. EL has a trailing four-quarter earnings surprise of 107.4%, on average.

European Wax Center ( EWCZ) currently has an Earnings ESP of +2.26% and a Zacks Rank of 3. The company is likely to register a decline in the top line when it reports second-quarter 2025 numbers. The consensus mark for revenues is pegged at $56.9 million, which indicates a decrease of 4.9% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for EWCZ’s quarterly earnings per share of 19 cents implies a rise of 26.7% from the year-ago quarter. The consensus mark has been stable in the past 30 days. EWCZ has a trailing four-quarter earnings surprise of 186.9%, on average.

BJ's Wholesale Club Holdings, Inc. (BJ) currently has an Earnings ESP of +0.29% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS has been stable in the past 30 days at $1.10, which implies a 0.9% rise year over year.

The consensus mark for BJ's Wholesale Club’s quarterly revenues is pegged at $5.5 billion, which indicates growth of 5.2% from the figure reported in the prior-year quarter. BJ delivered a trailing four-quarter earnings surprise of 17.7%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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