Here’s Why Flower Foods (FLO) Stock Is Gaining Despite Q1 Earnings Miss

NEW YORK (TheStreet) -- Flower Foods (FLO) - Get Report stock is advancing 3.54% to $19.03 on heavy trading volume on Thursday afternoon after the packaged bakery goods manufacturer boosted its full year earnings guidance even though the company's first quarter results were below estimates.

For the 2016 fiscal year, the Thomasville, GA-based company expects to report earnings of $1 to $1.06 per share, compared with the prior earnings outlook of 98 cents to $1.04 per share.

Flower Foods maintained its full year revenue guidance at $3.99 billion to $4.08 billion.

After yesterday's market close, the maker of Nature's Own and Wonder bread reported earnings of 28 cents per share for the fiscal 2016 first quarter, missing estimates by a penny.

Revenue increased 5.1% year over year to $1.204 billion, but below estimates that called for $1.218 billion for the latest quarter.

So far today, 3.85 million shares of Flower Foods have been traded, compared with its average daily volume of 1.93 million shares.

Separately, Flower Foods has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's growth in earnings per share, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures, which offsets weak operating cash flow and generally disappointing stock performance.

You can view the full analysis from the report here: FLO

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.