Sprouts Earnings: What To Look For From SFM

Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.

Sprouts met analysts’ revenue expectations last quarter, reporting revenues of $2.15 billion, up 7.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.

Is Sprouts a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Sprouts’s revenue to grow 3.9% year on year, slowing from the 18.7% increase it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sprouts has missed Wall Street’s revenue estimates multiple times over the last two years.

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, there has been positive investor sentiment in the segment, with share prices up 7.7% on average over the last month. Sprouts is down 6.3% during the same time .

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