Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) will be reporting results tomorrow after the bell. Here’s what to expect.
Sprouts beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $2.00 billion, up 17.5% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations.
Is Sprouts a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sprouts’s revenue to grow 17.1% year on year to $2.21 billion, improving from the 8.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.55 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sprouts has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.7% on average.
With Sprouts being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for non-discretionary retail stocks. However, the whole sector has been hit hard over the last month as stocks in Sprouts’s peer group are down 2.5% on average. Sprouts is up 11% during the same time and is heading into earnings with an average analyst price target of $174.31 (compared to the current share price of $169.50).
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