Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) will be reporting results tomorrow after market hours. Here's what to look for.
Sprouts met analysts' revenue expectations last quarter, reporting revenues of $1.70 billion, up 7.7% year on year. It was a very strong quarter for the company, with optimistic earnings guidance for the full year.
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 6.6% year on year to $1.85 billion, improving from the 5.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.00 per share.
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 only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.7% 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 9.1% on average. Sprouts is up 6.3% during the same time and is heading into earnings with an average analyst price target of $57.74167 (compared to the current share price of $67.64).
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