Flowers Foods' stock experienced a significant after-hours plunge of 5.16% following the release of its fourth-quarter and full-year 2025 financial results.
The decline appears driven by two main factors from the company's earnings report. First, Flowers Foods reported a GAAP net loss of $67.1 million for the fourth quarter, primarily due to a $136 million non-cash impairment of intangible assets. Second, and potentially more concerning to investors, the company issued fiscal 2026 guidance that fell below analyst expectations, projecting adjusted earnings per share of $0.80 to $0.90 compared to the consensus estimate of $0.97.
The company also warned of expected headwinds in 2026, combined with one fewer week of operations, which it anticipates will result in financial performance below 2025 levels. While the company's Q4 adjusted EPS of $0.22 beat estimates and net sales met expectations, the disappointing outlook and substantial impairment charge weighed heavily on investor sentiment during the after-hours session.