Sprouts (SFM) To Report Earnings Tomorrow: Here Is What To Expect

Sprouts (SFM) To Report Earnings Tomorrow: Here Is What To Expect

Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) will be announcing earnings results tomorrow after market hours. Here's what to expect.

Sprouts beat analysts' revenue expectations by 1.9% last quarter, reporting revenues of $1.88 billion, up 8.7% year on year. It was a very strong quarter for the company, with optimistic earnings guidance for the next quarter and a decent beat of analysts' earnings estimates.

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 8.4% year on year to $1.83 billion, improving from the 6.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 per share.

Sprouts Total Revenue

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 a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1% 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, there has been positive investor sentiment in the segment, with share prices up 3.3% on average over the last month. Sprouts is up 4.8% during the same time and is heading into earnings with an average analyst price target of $71.8 (compared to the current share price of $87.54).

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