Bloom Is Off Flower Foods; Shares Fall 7%

Flower Foods posts a 5% increase in first-quarter profit, but misses expectations by a penny, sending shares in the red.

Author:: Jeanine Poggi
Publish date:: May 27, 2009 11:27 AM EDT

Baked-goods company

Flower Foods

(FLO) - Get Report

saw a 5% gain in profit during the first quarter, as consumers opted to eat home to save money -- but shares were in the red Wednesday morning as the company missed expectations by a penny.

The maker of Nature's Own bread said its earnings reached $37.4 million, or 40 cents per share, up from $35.8 million, or 39 cents per share, a year ago. But results slightly misses analysts' forecast of 41 cents.

Sales grew 19% to $807 million from $676.7 million, helped by higher prices and acquisitions.

Materials, supplies, labor and other production costs jumped 22% to $429.5 million in the quarter.

Looking forward, Flower Foods reaffirmed its full-year earnings in the range of $1.37 to $1.48 per share. Analysts anticipate profit of $1.45 per share for the year.

Shares of the company fell 7% to $21.39 in morning trading.