Flowers Foods lowers guidance as category pressures impact sales
Ryals McMullian, the chairman and CEO of Flowers Foods, said the quarter was marked by 'economic uncertainty and greater than expected category declines'.
The company is investing in 'on-trend innovation' targeting 'faster-growing categories' as an offset, he said, noting the entry of the company's Dave's Killer Bread brand into snacking and the recent acquisition of Simple Mills, a US-based biscuit and snack-bar maker.
Nature's Own brand owner Flowers Foods has forecast net sales of $5.29bn to $5.39bn, reflecting 3.8% to 5.7% growth over the previous year.
Earlier guidance projected net sales of $5.40bn to $5.49bn, indicating a 5.9% to 7.5% year-on-year growth.
In January, Flowers Foods expanded its snack portfolio by acquiring Simple Mills for $795m.
Excluding that acquisition, net sales for fiscal 2025 are expected to be between $5.08bn and $5.17bn, representing a decline of 0.5% to growth of 1.3%.
The previous guidance, excluding Simple Mills, estimated net sales of $5.18bn to $5.26bn, or growth of 1.5% to 3%.
Adjusted EBITDA is projected to range from $534m to $562m, compared to the previous estimate of $560m to $591m.
Without the Simple Mills acquisition, adjusted EBITDA is expected to be $504m to $529m, down from the prior guidance of $526m to $554m.
Adjusted diluted EPS is now projected at $1.05 to $1.15, compared to the earlier estimate of $1.11 to $1.24.
Excluding Simple Mills, adjusted diluted EPS is expected to be $1.13 to $1.22, down from the previous $1.18 to $1.28.
McMullian said the company's adjusted financial guidance 'reflects our first-quarter performance, the challenging consumer environment, and potential for increased tariff costs'.
He added: 'To improve our near-term results, we are gaining additional shelf space, winning new business, and taking other proactive measures, while evolving our business to enable long-term outperformance."
Net sales for the quarter ended 19 April dropped to $1.55bn, and net income fell 27.4% to $52.9m.
Adjusted EBITDA climbed 1.6% to $162m, while the margin fell 30 basis points to 10.4%.
Diluted EPS dipped by $0.09 to $0.25.
Simple Mills added $24.3m in net sales along with a net loss of $4.2m, affecting diluted EPS by -$0.02.
Flowers Foods said Simple Mills will contribute $218-225m to the year's net sales, down from $223-230m previously.
"Flowers Foods lowers guidance as category pressures impact sales" was originally created and published by Just Food, a GlobalData owned brand.
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The vaccine maker's quarterly results were better than feared, however. Moderna's adjusted loss of $2.13 per share was smaller than the $2.97 a share loss expected. Revenue of $142 million dropped 41% year over year but also came in ahead of estimates of $112.9 million, per LSEG data. Reuters reports: Read more here. Chevron beats Wall Street profit estimates with record production Chevron (CVX) beat analyst estimates on Friday for second-quarter profit as record oil and gas production and lower capital expenditure helped the US oil producer boost earnings despite weaker crude prices. Chevron shares were flat in premarket trading. Reuters reports: Read more here. Chevron (CVX) beat analyst estimates on Friday for second-quarter profit as record oil and gas production and lower capital expenditure helped the US oil producer boost earnings despite weaker crude prices. Chevron shares were flat in premarket trading. Reuters reports: Read more here. Exxon beats profit estimates with higher production despite weak oil prices Shares in Exxon Mobil (XOM) rose more than 1% before the bell on Friday after the company beat Wall Street estimate for second-quarter profit as higher oil and gas production helped the top US oil producer overcome lower crude prices. Reuters reports: Read more here. Shares in Exxon Mobil (XOM) rose more than 1% before the bell on Friday after the company beat Wall Street estimate for second-quarter profit as higher oil and gas production helped the top US oil producer overcome lower crude prices. Reuters reports: Read more here. Amazon tosses a bone to the Fed chair Fed Chair Jerome Powell should read the Amazon (AMZN) earnings call transcript. Interesting call out by Amazon CEO Andy Jassy: I don't necessarily agree here, as many CEOs have told me they are hiking prices because of tariffs. But it's a good talking point from Jassy nonetheless. Fed Chair Jerome Powell should read the Amazon (AMZN) earnings call transcript. Interesting call out by Amazon CEO Andy Jassy: I don't necessarily agree here, as many CEOs have told me they are hiking prices because of tariffs. But it's a good talking point from Jassy nonetheless. How to think about Apple's quarter... We knew the tariff hit was coming on Apple (AAPL). It came, and it was ugly. The earnings call wasn't that eventful, mostly Tim Cook trying to soothe concerns that Apple will be a player in AI. I did like Apple was another tech player calling out an acceleration in their cloud business (similar to Microsoft (MSFT) and Alphabet (GOOGL). Overall, I like how the Evercore ISI summed things up this evening: "Apple delivered a better than expected quarter and the services growth and commentary around limited impact from the Epic ruling will chip away at part of the services bear case. Stock likely remains relatively range bound as we await the more impactful ruling on the Google revenue sharing deal." We knew the tariff hit was coming on Apple (AAPL). It came, and it was ugly. The earnings call wasn't that eventful, mostly Tim Cook trying to soothe concerns that Apple will be a player in AI. I did like Apple was another tech player calling out an acceleration in their cloud business (similar to Microsoft (MSFT) and Alphabet (GOOGL). Overall, I like how the Evercore ISI summed things up this evening: "Apple delivered a better than expected quarter and the services growth and commentary around limited impact from the Epic ruling will chip away at part of the services bear case. Stock likely remains relatively range bound as we await the more impactful ruling on the Google revenue sharing deal." Apple 'significantly growing' AI investments, sees $1.1 billion tariff hit in current quarter Apple (AAPL) executives offered some color on the iPhone maker's quarterly results Thursday and the outlook ahead amid tariffs and the impact of Google's antitrust lawsuit: Listen to the earnings call live here. Apple (AAPL) executives offered some color on the iPhone maker's quarterly results Thursday and the outlook ahead amid tariffs and the impact of Google's antitrust lawsuit: Listen to the earnings call live here. First Solar raises annual sales outlook, expects higher prices due to tariffs Reuters reports: Read more here. Reuters reports: Read more here. Strategy results show company buoyed by bitcoin in Q2 Strategy (MSTR) stock rose less than 1% after the company soared past estimates, lifted by a Q2 rally in bitcoin (BTC-USD). For the second quarter, the Michael Saylor-led firm reported cash and cash equivalents of $50.1 million, below Bloomberg consensus estimates for $1.11 billion. Diluted earnings per share were $32.60, versus estimates for a $0.03 per share loss, per S&P Global Market Intelligence. Revenue came in at $114 million. For the full year, Strategy expects operating income of $34 billion, net income of $24 billion, and diluted earnings per share of $80. As the largest corporate holder of bitcoin, crypto investors looked to the software maker's results as a bellwether for the crypto market. As of June 30, the company held approximately 597,325 bitcoins and achieved a year-to-date bitcoin yield of 25%. "Strategy has achieved a year-to-date BTC Yield of 25%, meeting our full year target well ahead of our initial timeline," the company said. "As a result, our BTC $ Gain now exceeds $13 billion, and the increase in the price of bitcoin in the second quarter drove second quarter operating income of $14 billion and Q2 diluted EPS of $32.60." Strategy (MSTR) stock rose less than 1% after the company soared past estimates, lifted by a Q2 rally in bitcoin (BTC-USD). For the second quarter, the Michael Saylor-led firm reported cash and cash equivalents of $50.1 million, below Bloomberg consensus estimates for $1.11 billion. Diluted earnings per share were $32.60, versus estimates for a $0.03 per share loss, per S&P Global Market Intelligence. Revenue came in at $114 million. For the full year, Strategy expects operating income of $34 billion, net income of $24 billion, and diluted earnings per share of $80. As the largest corporate holder of bitcoin, crypto investors looked to the software maker's results as a bellwether for the crypto market. As of June 30, the company held approximately 597,325 bitcoins and achieved a year-to-date bitcoin yield of 25%. "Strategy has achieved a year-to-date BTC Yield of 25%, meeting our full year target well ahead of our initial timeline," the company said. "As a result, our BTC $ Gain now exceeds $13 billion, and the increase in the price of bitcoin in the second quarter drove second quarter operating income of $14 billion and Q2 diluted EPS of $32.60." Apple reports earnings, revenue ahead of forecasts Apple reported results Thursday that beat forecasts on the top and bottom lines as the iPhone maker boasted about double-digit revenue growth across its iPhone, Mac, and Services businesses, as well as growth in all of its geographic segments. Earnings per share came in at $1.57, ahead of the $1.43 Wall Street had expected, while revenue tallied $94 billion, up 10% from last year and ahead of forecasts for $89.2 billion. Its Services revenue totaled $27.4 billion, a new record, and comprised nearly 30% of its total revenues in the quarter. Apple stock was up about 2% following the results. Apple reported results Thursday that beat forecasts on the top and bottom lines as the iPhone maker boasted about double-digit revenue growth across its iPhone, Mac, and Services businesses, as well as growth in all of its geographic segments. Earnings per share came in at $1.57, ahead of the $1.43 Wall Street had expected, while revenue tallied $94 billion, up 10% from last year and ahead of forecasts for $89.2 billion. Its Services revenue totaled $27.4 billion, a new record, and comprised nearly 30% of its total revenues in the quarter. Apple stock was up about 2% following the results. Roku reports surprise profit in Q2, revenue beats expectations Roku's (ROKU) second quarter results got a boost from an expanding user base and advertising sales, the company reported Thursday. The company reported profits of $0.07 per share, above the $0.17 per share loss analysts expected. Revenue came in at $1.11 billion for the quarter, compared to the analysts' average estimate of $1.07 billion, according to data compiled by LSEG. Reuters reports: Read more here. Roku's (ROKU) second quarter results got a boost from an expanding user base and advertising sales, the company reported Thursday. The company reported profits of $0.07 per share, above the $0.17 per share loss analysts expected. Revenue came in at $1.11 billion for the quarter, compared to the analysts' average estimate of $1.07 billion, according to data compiled by LSEG. Reuters reports: Read more here. Coinbase stock falls 7% after results disappoint Crypto giant Coinbase (COIN), a recent addition to the S&P 500, saw shares fall more than 7% in after-hours trading on Thursday after the company posted second quarter results that came in below Wall Street forecasts. Coinbase reported second quarter revenue of $1.5 billion, below the $1.59 billion analysts had forecast, while trading volume and transactions revenue both fell shy of expectations. Subscriptions and services revenue in the second quarter totaled $656 million. Adjusted EBITDA in the second quarter totaled $514 million, down from $596 million a year ago. In the third quarter, the company expects subscriptions and services revenue to fall within a range of $665 million-$745 million. Since the April 9 bottom in the stock market, Coinbase shares have roughly doubled; ahead of Thursday's results, the stock was up more than 50% this year. Crypto giant Coinbase (COIN), a recent addition to the S&P 500, saw shares fall more than 7% in after-hours trading on Thursday after the company posted second quarter results that came in below Wall Street forecasts. Coinbase reported second quarter revenue of $1.5 billion, below the $1.59 billion analysts had forecast, while trading volume and transactions revenue both fell shy of expectations. Subscriptions and services revenue in the second quarter totaled $656 million. Adjusted EBITDA in the second quarter totaled $514 million, down from $596 million a year ago. In the third quarter, the company expects subscriptions and services revenue to fall within a range of $665 million-$745 million. Since the April 9 bottom in the stock market, Coinbase shares have roughly doubled; ahead of Thursday's results, the stock was up more than 50% this year. Reddit stock soars as company posts fastest quarterly revenue growth in 3 years Reddit (RDDT) stock jumped as much as 13% after hours after the social media company reported its fastest revenue growth in three years. Profits reached $0.48 per share in the second quarter, above the $0.19 per share projected by Wall Street analysts. Revenue grew 78% to $500 million, higher than the $425 million expected. Yahoo Finance's Laura Bratton reports: Read more here. Reddit (RDDT) stock jumped as much as 13% after hours after the social media company reported its fastest revenue growth in three years. Profits reached $0.48 per share in the second quarter, above the $0.19 per share projected by Wall Street analysts. Revenue grew 78% to $500 million, higher than the $425 million expected. Yahoo Finance's Laura Bratton reports: Read more here. Amazon posts earnings beat but stock slips Amazon (AMZN) profits and sales beat estimates for the second quarter, the company reported: AWS revenue rose 17% to hit $30.8 billion versus an expected $30.7 billion. It topped $26.2 billion in Q2 last year. The company's report follows Google's (GOOG, GOOGL) and Microsoft's (MSFT) own blowout announcements, highlighting growth across their respective cloud businesses on the back of increased customer spending on AI. Rival Microsoft reported that its Azure business generated $75 billion in fiscal 2025. Amazon widened its guidance for operating income on the lower end. For the third quarter, Amazon expects the operating income to come in between $15.5 billion and $20 billion, potentially indicating a headwind from tariffs. The initial reaction on the Street was downbeat, with Amazon stock slipping 2% after hours. Read more here. Amazon (AMZN) profits and sales beat estimates for the second quarter, the company reported: AWS revenue rose 17% to hit $30.8 billion versus an expected $30.7 billion. It topped $26.2 billion in Q2 last year. The company's report follows Google's (GOOG, GOOGL) and Microsoft's (MSFT) own blowout announcements, highlighting growth across their respective cloud businesses on the back of increased customer spending on AI. Rival Microsoft reported that its Azure business generated $75 billion in fiscal 2025. Amazon widened its guidance for operating income on the lower end. For the third quarter, Amazon expects the operating income to come in between $15.5 billion and $20 billion, potentially indicating a headwind from tariffs. The initial reaction on the Street was downbeat, with Amazon stock slipping 2% after hours. Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Drive
4 minutes ago
- The Drive
Why the Mercedes-Benz G-Wagon is a Secret Tax Write-Off
The latest car news, reviews, and features. If the financial alphas of TikTok are to be believed, there's a secret loophole in US tax code that allows you to buy a Mercedes G-Wagon and deduct its cost from your taxes. They're not entirely wrong—let's dive into Section 179, hustle culture, and how the G-Class ended up becoming a status symbol in more ways than one. Really, it's 'G- Wagen ' as in Gelandewagen, which is pretty much just German for 'off-roader.' But colloquially, it's a 'Wagon' stateside. Not everybody driving around in a Merc G is committing tax fraud, but the vehicle's unique combination of specs and appeal does open the door for shady small-biz shenanigans. See, in late 2010, Congress passed the Small Business Jobs Act. It was designed to help small businesses recover from the financial crisis of 2008, and provided business owners with access to lending programs, increased limits on what they could borrow, and tax cuts on essential equipment. A part of that was what's known as Section 179. Section 179 of the IRS's Publication 946 deals specifically with large equipment needed for work. As our Editor-In-Chief, Kyle Cheromcha, breaks it down in the video above, for example, if a farmer needs a $50,000 tractor, but only puts $5,000 down and finances the rest, they can still write down the entire purchase on their taxes in the first year. The spirit of this is so companies can acquire expensive, unique equipment like construction vehicles or restaurant kitchen appliances. But it gets a little murky when it comes to road-going vehicles. A road vehicle can be eligible for this deduction if it's used at least 50% for business, and has a GVWR of between 6,000 and 14,000 pounds. When this rule was minted, that pretty much only included heavy-duty trucks, not luxury vehicles. But of course, the Mercedes G-Class is both. And now that more cars than ever are extremely heavy, and plenty of work trucks are loaded with luxury features, Section 179 is more susceptible to abuse than ever. Check out the video for the full breakdown of how we got here, and whether or not claiming a $150,000 luxury SUV on your taxes is a good idea. Have you seen our YouTube channel since we brought it back online last year? Check it out right now!
