Sprouts (SFM) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2024/02/21 2:00 am EST

Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) will be announcing earnings results tomorrow after the bell. Here's what to look for.

Last quarter Sprouts reported revenues of $1.71 billion, up 7.7% year on year, beating analyst revenue expectations by 2%. It was a solid quarter for the company, with a decent beat of analysts' revenue estimates and optimistic earnings guidance for the next quarter.

Is Sprouts buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Sprouts's revenue to grow 7.4% year on year to $1.69 billion, improving on the 5.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 per share.

Sprouts Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 0.8%.

Looking at Sprouts's peers in the non-discretionary retail segment, only Walmart has so far reported results, delivering top-line growth of 5.7% year on year, and beating analyst estimates by 2.4%. Walmart was up 2% after the results.

Read our full analysis of Walmart's earnings results here.

There has been positive sentiment among investors in the non-discretionary retail segment, with the stocks up on average 3.6% over the last month. Sprouts is up 4.8% during the same time, and is heading into the earnings with analyst price target of $41.5, compared to share price of $53.5.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.