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Food Stocks' Q4 Earnings Slated for on Feb 13: FLO and LNCE

We are well past the halfway mark this earnings season with results already out for 319 S&P 500 members. Investors seem to be impressed as the quarter is all set to break the past records, marking the best performance in the last eight quarters. However, the estimates have started going downhill, but it is better than the historical levels.

Per the Earnings Outlook as of Feb 8, 2017, earnings for the total S&P 500 companies will improve 7.3% from the year-ago period, with total revenue rising by 3.9%.

As per the report, out of the 319 S&P 500 companies that have come up with their quarterly numbers, approximately 69.6% posted positive earnings surprises, while 54.5% beat the top-line expectations. Total earnings for these index members were up 5.8% from the year-ago quarter, while revenues increased 4.5%.

The performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, four are expected to witness an earnings decline. Of these, Autos, Transportation and Conglomerates are likely to be a major drag.

While the Consumer Staples sector is showing positive signs with total earnings expected to grow 10.3%, while revenues are anticipated to edge up 4.1%. As of Feb 8, 59.4% of the total number of S&P 500 companies in this sector has reported their results. Out of these, 57.9% companies posted an earnings beat (growing 9.5% year over year), while 36.8% surpassed revenue estimates (increasing 2.7% year over year).

Food Stocks form part of the Consumer Staples sector. So, let's see what awaits the following food stocks that are queued up for fourth-quarter 2016 earnings releases on Feb 13.

Flowers Foods, Inc.FLO , a leading producer of fresh packaged bakery foods in the U.S. has missed the Zacks Consensus Estimate in three of the trailing four quarters, with an average earnings miss of 8.8%.

Our proven model does not conclusively show that Flowers Foods is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today's Zacks #1 Rank stocks here .

Flowers Foods, Inc. Price, Consensus and EPS Surprise

Flowers Foods, Inc. Price, Consensus and EPS Surprise | Flowers Foods, Inc. Quote

Flowers Foods has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 16 cents. Moreover, the company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Finally, let's see what's in store for Snyder's-Lance, Inc.LNCE , a manufacturer and marketer of snack foods, which is scheduled to report results before the opening bell. The company has delivered positive earnings average surprise of 6.8% in the last four quarters.

Snyder's-Lance, Inc. Price, Consensus and EPS Surprise

Snyder's-Lance, Inc. Price, Consensus and EPS Surprise | Snyder's-Lance, Inc. Quote

Snyder's-Lance has an Earnings ESP of 0.00%, with both the Most Accurate estimate and the Zacks Consensus Estimate pegged at 40 cents. You may uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Further, the company's Zacks Rank #4 with an Earnings ESP of 0.00% shows that the company is unlikely to beat estimates in the to-be-reported quarter.

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Snyder's-Lance, Inc. (LNCE): Free Stock Analysis Report

Flowers Foods, Inc. (FLO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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