UPDATE 2-Flowers Foods Q1 profit lags Street view, shares fall
* Q1 EPS $0.40 vs est $0.41
* Q1 revenue rises 19 pct to $807.0 mln
* Backs 2009 outlook * Shares fall as much as 8 pct (Recasts, adds conference call details, analyst comments, share movement)
By Mihir Dalal
BANGALORE, May 27 (Reuters) - Bakery company Flowers Foods Inc (FLO.N: Quotazione) posted a quarterly profit that missed Wall Street estimates, weighed down by higher ingredient costs and increased promotional activity, sending its shares down 8 percent.
Flowers Foods implemented promotional pricing in many markets by mid-quarter and will continue to do so if market conditions warrant, a company executive said on a conference call with analysts.
"Promotional pricing is one of the major risk factors that concern Flowers Foods. People think that maybe they won't be able to maintain the price increases -- that's why the stock's down," Keybanc Capital Markets analyst Akshay Jagdale said.
Shares of the company, which produces, markets, and distributes breads, buns, rolls, and bakery goodies to retail and foodservice customers, fell 6 percent to $21.55 in afternoon trade on the New York Stock Exchange. They touched a low of $21 earlier.
Concerns about pricing are overdone, Jagdale said, adding that Wednesday's share price decline represents a good opportunity for investors to buy the stock. Continua...