THOMASVILLE, Ga. (AP) — Shares of Flowers Foods Inc. fell Monday after the maker of packaged bakery goods said its fourth-quarter results missed Wall Street expectations, and it offered a tempered earnings outlook for the current year.
Flowers, like other food companies, is dealing with rising costs for ingredients as shoppers cut back on spending. The results did not meet the company's own expectations, said George E. Deese, chairman and chief executive officer.
"Our sales volume was lower than expected in the fourth quarter as we initiated pricing action and reduced promotions in the face of commodity headwinds," he said. "The weak economy and high unemployment continue to pressure the market and impact consumer buying patterns."
The company earned $31.4 million, or 34 cents per share, in the period ended January 1. That compares with a year-earlier profit of $30.6 million, or 33 cents per share. Analysts expected earnings of 39 cents per share, according to FactSet.
Revenue fell to $573.1 million from $576.8 million, falling short of the $605.2 million analysts expected.
The stock fell $1.25, or 5 percent, to close Monday at $24.33.
Flowers, based in Thomasville, Ga., makes packaged bread, rolls, buns, tortillas and pastries. Its brands include Nature's Own and Cobblestone Mill.
Sales in the white brand, which includes white bread products, and sales in its breakfast bread and cake categories fell, while sales in the sandwich round category rose. The company added that although it slashed prices on certain items, competition from other baked goods makers pressured results.
For the year that ended Jan. 1, the company earned $137 million, or $1.49 per share. In the previous year, it earned $130.3 million, or $1.41 per share. Revenue fell to $2.57 billion from $2.6 billion.
The company said it expects 2011 earnings per share to grow between 5 and 10 percent, a more cautious forecast than the 8 to 13 percent growth it predicted previously. A 5 to 10 percent growth in per-share earnings would translate to $1.56 and $1.64. Analysts expected annual earnings of $1.67 per share, according to FactSet.
The company expects fiscal 2011 revenue to grow between 3 and 6 percent, excluding future acquisitions. That translates to sales between $2.65 billion and $2.72 billion. Analysts expected $2.72 billion in revenue.