Grocery store chain Sprouts Farmers Market (NASDAQ: SFM) will be reporting earnings this Wednesday afternoon. Here’s what to look for.
Sprouts met analysts’ revenue expectations last quarter, reporting revenues of $2.33 billion, up 4.7% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations.
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 6.1% year on year, slowing from the 13.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sprouts has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Sprouts’s peers in the non-discretionary retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Albertsons posted flat year-on-year revenue, meeting analysts’ expectations, and Costco reported revenues up 11.1%, topping estimates by 0.9%. Albertsons traded up 4.3% following the results while Costco was also up 2.9%.
Read our full analysis of Albertsons’s results here and Costco’s results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 4.8% on average over the last month. Sprouts is up 3.9% during the same time and is heading into earnings with an average analyst price target of $91.57 (compared to the current share price of $65.92).
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