Sprouts Farmers Market (SFM) shares were up and down after the grocery store chain reported strong third-quarter earnings and raised its guidance.
XSprouts Farmers Market Earnings
Estimates: Per-share profit growth of 13% to 26 cents as sales rise 10% to $1.33 billion. Same-store sales seen rising 1.5%, according to Consensus Metrix analysts.
Results: EPS of 29 cents, or 27 cents after excluding a one-time tax benefit, on revenue of $1.33 billion. Same-store sales rose 1.5%.
Outlook: Full-year EPS is now seen at $1.28-$1.30, in line with consensus views for $1.29 and up from a prior view of $1.24-$1.28. Full-year revenue growth is now seen at 11%-11.5% with comp sales up 1.7%-2%, vs. a prior view of 10.5%-11.5% revenue growth with comp sales up 1.5%-2.5%.
"Robust new store productivity, continued product innovation and strong operations drove a double digit increase in net sales in the third quarter," said CEO Amin Maredia in a statement.
Sprouts Stock
Stock: Shares rose as high as 27.97 and as low as 26.06 before closing up 0.45% to 27.01 on the stock market today, just below the 50-day line. Sprouts stock is in a flat base with a 29.77 entry point.
The stock's relative strength line has be climbing back to June 2017 levels, and the stock has a Relative Strength Rating of 94.
The Amazon (AMZN) acquisition of upscale grocer Whole Foods Market in 2017 had raised the specter of a price war among natural-foods retailers, but Sprouts has continued to grow sales.
The next frontier for major supermarket players is now online grocery delivery. That battle is heating up between Amazon, Kroger (KR) and Walmart (WMT), the nation's largest grocery seller.
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