Sprouts Farmers Exceeds Expectations with Strong Quarterly Earnings
Sprouts Farmers Market (SFM) reported impressive quarterly earnings, exceeding analyst expectations and continuing its trend of outperforming the market. The natural and organic food retailer posted earnings of $1.12 per share, surpassing the Zacks Consensus Estimate of $1.00 per share. This represents a 12% earnings surprise and marks the fourth consecutive quarter where the company has surpassed consensus EPS estimates.
Revenue for the quarter ended March 2024 also exceeded expectations, reaching $1.88 billion, surpassing the Zacks Consensus Estimate by 2.20%. This represents a year-over-year increase of 8.7% compared to $1.73 billion in the same quarter last year. Sprouts Farmers has consistently topped consensus revenue estimates for the past four quarters.
The company's strong performance has been reflected in its stock price, which has surged 37.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 5.6%.
Positive Outlook for Sprouts Farmers
Analysts are optimistic about Sprouts Farmers' future prospects. The company's Zacks Rank #2 (Buy) indicates that the stock is expected to outperform the market in the near term. This positive outlook is further supported by the favorable trend in earnings estimate revisions. The current consensus EPS estimate for the coming quarter is $0.73 on $1.81 billion in revenues, and $2.95 on $7.3 billion in revenues for the current fiscal year.
Additionally, the Zacks Industry Rank for Food - Natural Foods Products, which Sprouts Farmers belongs to, is currently in the top 11% of all Zacks industries. This suggests that the industry is well-positioned for growth, further bolstering the positive outlook for Sprouts Farmers.
Upcoming Earnings Report
Another company in the same industry, Farmer Brothers (FARM), is expected to report its earnings for the quarter ended March 2024 on May 9th. Analysts predict a quarterly loss of $0.16 per share, representing a year-over-year change of +71.9%. The consensus EPS estimate for the quarter has remained unchanged over the past 30 days. Farmer Brothers' revenues are expected to be $88.5 million, down 28.8% from the year-ago quarter.