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Sprouts Farmers (SFM) to Post Q4 Earnings: What's in Store?
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Sprouts Farmers Market, Inc. (SFM - Free Report) is likely to register an increase in the top line when it reports fourth-quarter 2020 results on Feb 25, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $1,581 million, indicating an improvement of 15.8% from the prior-year reported figure. The company is likely to have gained from coronavirus-led demand spike, as dining at home was widely adopted either due to restricted travelling, social distancing and stay-at-home norms.
Further, the bottom line of this provider of fresh, natural, and organic food products is expected to improve year over year. We note that the Zacks Consensus Estimate for earnings for the quarter under review has been stable over the past 30 days at 39 cents. The figure suggests growth of 44.4% from the prior-year quarter.
Notably, the company has a trailing four-quarter earnings surprise of 59.5%, on average. In the last reported quarter, this Phoenix, AZ-based company’s bottom line surpassed the Zacks Consensus Estimate by a significant margin.
Factors to Note
Sprouts Farmers’ focus on better-for-you products, enhancement of e-commerce capabilities and a network of fresh distribution centers bodes well. Notably, the company has been providing hassle-free shopping through Sprouts.com website and mobile app. Additionally, the company’s initiative to offer same-day delivery is likely to have expanded customer base.
The company has been expanding ready-to-eat, ready-to-heat and ready-to-cook items. Apart from these, it has been expanding private-label offerings. Moreover, the company has been lowering operational complexity, optimizing production and improving in-stock position.
All these endeavors might get reflected in the to-be-reported quarter’s top line. On its last earnings call, management guided comparable-store sales to be in the low single digits and adjusted earnings between 36 cents and 40 cents.
Clearly, aforementioned factors raise optimism about the outcome of the results. However, margins still remain an area to watch. Impact of investments to increase team’s pay and benefits, and expenses on additional safety and cleansing measures, due to the coronavirus pandemic, on margins cannot be ruled out. Also, costs associated with digital fulfillment and supply chain may hurt the same.
Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise
Our proven model does not conclusively predict a beat for Sprouts Farmers this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Sprouts Farmers has a Zacks Rank #3 but an Earnings ESP of 0.00%.
3 More Stocks With a Favorable Combination
Here are three other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Dollar Tree (DLTR - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #2.
Costco (COST - Free Report) has an Earnings ESP of +2.43% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Sprouts Farmers (SFM) to Post Q4 Earnings: What's in Store?
Sprouts Farmers Market, Inc. (SFM - Free Report) is likely to register an increase in the top line when it reports fourth-quarter 2020 results on Feb 25, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $1,581 million, indicating an improvement of 15.8% from the prior-year reported figure. The company is likely to have gained from coronavirus-led demand spike, as dining at home was widely adopted either due to restricted travelling, social distancing and stay-at-home norms.
Further, the bottom line of this provider of fresh, natural, and organic food products is expected to improve year over year. We note that the Zacks Consensus Estimate for earnings for the quarter under review has been stable over the past 30 days at 39 cents. The figure suggests growth of 44.4% from the prior-year quarter.
Notably, the company has a trailing four-quarter earnings surprise of 59.5%, on average. In the last reported quarter, this Phoenix, AZ-based company’s bottom line surpassed the Zacks Consensus Estimate by a significant margin.
Factors to Note
Sprouts Farmers’ focus on better-for-you products, enhancement of e-commerce capabilities and a network of fresh distribution centers bodes well. Notably, the company has been providing hassle-free shopping through Sprouts.com website and mobile app. Additionally, the company’s initiative to offer same-day delivery is likely to have expanded customer base.
The company has been expanding ready-to-eat, ready-to-heat and ready-to-cook items. Apart from these, it has been expanding private-label offerings. Moreover, the company has been lowering operational complexity, optimizing production and improving in-stock position.
All these endeavors might get reflected in the to-be-reported quarter’s top line. On its last earnings call, management guided comparable-store sales to be in the low single digits and adjusted earnings between 36 cents and 40 cents.
Clearly, aforementioned factors raise optimism about the outcome of the results. However, margins still remain an area to watch. Impact of investments to increase team’s pay and benefits, and expenses on additional safety and cleansing measures, due to the coronavirus pandemic, on margins cannot be ruled out. Also, costs associated with digital fulfillment and supply chain may hurt the same.
Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise
Sprouts Farmers Market, Inc. price-consensus-eps-surprise-chart | Sprouts Farmers Market, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict a beat for Sprouts Farmers this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Sprouts Farmers has a Zacks Rank #3 but an Earnings ESP of 0.00%.
3 More Stocks With a Favorable Combination
Here are three other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Target (TGT - Free Report) has an Earnings ESP of +9.79% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree (DLTR - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #2.
Costco (COST - Free Report) has an Earnings ESP of +2.43% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>