Sign up USA
Proactive Investors - Run By Investors For Investors

Sprouts Farmers Market in demand as Q3 earnings beat estimates, full-year guidance lifted

“Sprouts is pleased to report strong top-line growth and demonstrate our ability to leverage those sales into exceptional earnings growth for the quarter”
sprouts farmers market
Sprouts has more than 240 stores in 15 states, primarily in the south

Sprouts Farmers Market Inc (NASDAQ:SFM) was in demand on Thursday after the supermarket chain topped expectations with its third quarter earnings and upped its guidance.

The Phoenix-based group reported a profit of US$31.5mln for the three months to the end of September and said it had net income of US$0.23 per share.

That was significantly higher than the US$0.17 per share Wall Street analysts had forecast.

Net sales jumped 16% in the quarter to US$1.21bn (Q3 2016: US$1.04bn), also beating estimates of US$1.18bn.

‘Exceptional earnings growth’

“Sprouts is pleased to report strong top-line growth and demonstrate our ability to leverage those sales into exceptional earnings growth for the quarter. Sprouts' hallmark of fresh, healthy, affordable products continues to resonate with our customers and positions us as a leader in the industry," said chief executive Amin Maredia.

"We'll continue to accelerate strategic priorities that will enhance our business - from product assortment to the digital experience to customer service.

“These, coupled with our technology investments to drive efficiencies, will provide the flexibility to make future investments where needed to ensure Sprouts is well-positioned for the future.”

Full-year guidance raised

Given the strong performance so far in 2017, Sprouts now expects net sales growth of 14.5% to 15% (previously 13% to 14%) and also upped its earnings per share forecast to between US$0.98 and US$0.99 (previously US$0.88 to US$0.92).

As for new stores, the company remains on track to open 32 outlets this year.

Sprout shares gained 5.8% to US$19.96 on Thursday.

View full PROAC profile View Profile

Proactiveinvestors Timeline

Related Articles

November 15 2017
Next Fifteen Communications expects another strong performance in the second half
September 20 2017
The Cello Health unit led the way as it grew organically and via the acquisition of Defined Health
picture of Hunger Games cast
November 27 2017
Some of the most famous films ever made have been backed by FFI since it was founded in 1950

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use