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Sprouts Farmers (SFM) to Post Q3 Earnings: Key Aspects to Note
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Sprouts Farmers Market, Inc. (SFM - Free Report) is likely to register top- and bottom-line decline when it reports third-quarter 2021 numbers on Nov 4, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $1,565 million, suggesting a drop of 0.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings is currently pegged at 40 cents per share, indicating a slump of 23.1% from the year-ago quarter’s reported figure. The consensus mark has been steady in the past 30 days. The grocery retailer has a trailing four-quarter earnings surprise of 32.1%, on average.
Factors Likely to Impact Q3 Results
Sprouts Farmers has been grappling with moderation of at-home consumption and pantry loading trends, as consumers return to the old normal like dining out. Such headwinds are likely to have persisted during the third quarter. Sprouts Farmers’ top line is likely to have been impacted by tough year-on-year comparison, as gains from last year’s high-demand scenario are lapped.
Sprouts Farmers has been battling dismal margins. Due to the pandemic, the company’s gross margin is being impacted by lapping opportunistic produce buys and exceptionally low shrink from heightened demand witnessed last year. Ongoing inflationary trends in labor and transportation is a concern for the company. Such downsides are likely to have been a drag on the company’s bottom line during the third quarter.
The company is focused on growth-related initiatives such as innovating products especially in the natural organic space and expanding private-label offering. It has been boosting online sales by strengthening omni-channel capabilities like deliveries and features on its website and mobile app. Such upsides are likely to have provided some cushion to the company’s performance during the quarter in review.
Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Sprouts Farmers this time around. 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 currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Five Below (FIVE - Free Report) currently has an Earnings ESP of +3.90% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVS Health (CVS - Free Report) currently has an Earnings ESP of +1.74% and a Zacks Rank of 3.
Rite Aid currently has an Earnings ESP of +77.78% and is Zacks #3 Ranked.
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Sprouts Farmers (SFM) to Post Q3 Earnings: Key Aspects to Note
Sprouts Farmers Market, Inc. (SFM - Free Report) is likely to register top- and bottom-line decline when it reports third-quarter 2021 numbers on Nov 4, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $1,565 million, suggesting a drop of 0.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings is currently pegged at 40 cents per share, indicating a slump of 23.1% from the year-ago quarter’s reported figure. The consensus mark has been steady in the past 30 days. The grocery retailer has a trailing four-quarter earnings surprise of 32.1%, on average.
Factors Likely to Impact Q3 Results
Sprouts Farmers has been grappling with moderation of at-home consumption and pantry loading trends, as consumers return to the old normal like dining out. Such headwinds are likely to have persisted during the third quarter. Sprouts Farmers’ top line is likely to have been impacted by tough year-on-year comparison, as gains from last year’s high-demand scenario are lapped.
Sprouts Farmers has been battling dismal margins. Due to the pandemic, the company’s gross margin is being impacted by lapping opportunistic produce buys and exceptionally low shrink from heightened demand witnessed last year. Ongoing inflationary trends in labor and transportation is a concern for the company. Such downsides are likely to have been a drag on the company’s bottom line during the third quarter.
The company is focused on growth-related initiatives such as innovating products especially in the natural organic space and expanding private-label offering. It has been boosting online sales by strengthening omni-channel capabilities like deliveries and features on its website and mobile app. Such upsides are likely to have provided some cushion to the company’s performance during the quarter in review.
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 an earnings beat for Sprouts Farmers this time around. 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 currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Five Below (FIVE - Free Report) currently has an Earnings ESP of +3.90% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVS Health (CVS - Free Report) currently has an Earnings ESP of +1.74% and a Zacks Rank of 3.
Rite Aid currently has an Earnings ESP of +77.78% and is Zacks #3 Ranked.