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Factors to Know Ahead of Sprouts Farmers' (SFM) Q3 Earnings
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Sprouts Farmers Market, Inc. (SFM - Free Report) is likely to register an increase in the top line from the year-ago quarter’s reading when it reports third-quarter 2022 earnings on Nov 8, after the market closes. The Zacks Consensus Estimate for revenues stands at $1,582 million, indicating an increase of 4.6% from the prior-year reported figure.
The bottom line of this grocery retailer is expected to decline from the year-earlier quarter’s tally. The Zacks Consensus Estimate for third-quarter earnings per share has been stable at 52 cents over the past 30 days, indicating a 7.1% drop from the year-earlier quarter’s tally.
Sprouts Farmers has a trailing four-quarter earnings surprise of 15.6%, on average. In the last reported quarter, earnings of this Phoenix, AZ-based player surpassed the Zacks Consensus Estimate by 9.6%.
Factors to Note
Sprouts Farmers' focus on product innovation, customer experience and targeted marketing with everyday great pricing and technology bodes well. SFM is steadily expanding its presence in the natural organic space, given huge demand in the segment. Management has been lowering operational complexity, optimizing production, improving in-stock position and updating the structure to smaller format stores. Additionally, SFM is consistently trying to expand private-label offerings.
Sprouts Farmers is focused on creating a robust omni-channel experience. SFM continues providing hassle-free shopping through the Sprouts.com website and mobile app as well as creating a supply chain that provides the freshest produce while updating the store prototypes. Such initiatives are helping expand the customer base and in turn, revenues.
The aforementioned factors are likely to have favorably impacted the top-line performance. On its last earnings call, Sprouts Farmers had projected comparable stores sales growth in the bracket of 1-2% for the third quarter against a decline of 5.4% witnessed in the year-ago period.
Despite these tailwinds, inflationary pressures, increased gasoline and food prices, and supply-chain issues remain a concern. Any deleverage in SG&A expenses might have been an added deterrent. These might have weighed on Sprouts Farmers' margins during the quarter under review.
On its last earnings call, management had expected SG&A expenses to marginally increase in the back half of the year from the first-half level due to the timing of new store openings, higher marketing investment in the third quarter, rising supply costs and increased security measures in several stores. It had envisioned third-quarter earnings in the range of 49-53 cents a share, down from 56 cents reported in the year-ago period.
What the Zacks Model Unveils
Our proven model doesn’t 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, which isn’t the case here, as elaborated below. 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 #4 (Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank #2. LULU is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago fiscal quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
lululemon athletica’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year fiscal quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #3, currently. BJ is likely to register top-line growth from the prior-year fiscal quarter’s tally when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for Dollar General’s earnings in the fiscal third quarter is pegged at $2.54 per share, suggesting 22.1% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Costco (COST - Free Report) currently has an Earnings ESP of +0.17% and a Zacks Rank of 3. COST is expected to register top and bottom-line growth from the respective year-ago fiscal quarter’s actuals when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $54.98 billion, suggesting 9.2% growth from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for Costco’s quarterly earnings has been stable in the past 30 days at $3.15 a share. The consensus estimate for earnings suggests 6.1% growth from the year-ago fiscal quarter’s reported number. COST delivered an earnings beat of 7.7%, on average, in the trailing four quarters.
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Factors to Know Ahead of Sprouts Farmers' (SFM) Q3 Earnings
Sprouts Farmers Market, Inc. (SFM - Free Report) is likely to register an increase in the top line from the year-ago quarter’s reading when it reports third-quarter 2022 earnings on Nov 8, after the market closes. The Zacks Consensus Estimate for revenues stands at $1,582 million, indicating an increase of 4.6% from the prior-year reported figure.
The bottom line of this grocery retailer is expected to decline from the year-earlier quarter’s tally. The Zacks Consensus Estimate for third-quarter earnings per share has been stable at 52 cents over the past 30 days, indicating a 7.1% drop from the year-earlier quarter’s tally.
Sprouts Farmers has a trailing four-quarter earnings surprise of 15.6%, on average. In the last reported quarter, earnings of this Phoenix, AZ-based player surpassed the Zacks Consensus Estimate by 9.6%.
Factors to Note
Sprouts Farmers' focus on product innovation, customer experience and targeted marketing with everyday great pricing and technology bodes well. SFM is steadily expanding its presence in the natural organic space, given huge demand in the segment. Management has been lowering operational complexity, optimizing production, improving in-stock position and updating the structure to smaller format stores. Additionally, SFM is consistently trying to expand private-label offerings.
Sprouts Farmers is focused on creating a robust omni-channel experience. SFM continues providing hassle-free shopping through the Sprouts.com website and mobile app as well as creating a supply chain that provides the freshest produce while updating the store prototypes. Such initiatives are helping expand the customer base and in turn, revenues.
The aforementioned factors are likely to have favorably impacted the top-line performance. On its last earnings call, Sprouts Farmers had projected comparable stores sales growth in the bracket of 1-2% for the third quarter against a decline of 5.4% witnessed in the year-ago period.
Despite these tailwinds, inflationary pressures, increased gasoline and food prices, and supply-chain issues remain a concern. Any deleverage in SG&A expenses might have been an added deterrent. These might have weighed on Sprouts Farmers' margins during the quarter under review.
On its last earnings call, management had expected SG&A expenses to marginally increase in the back half of the year from the first-half level due to the timing of new store openings, higher marketing investment in the third quarter, rising supply costs and increased security measures in several stores. It had envisioned third-quarter earnings in the range of 49-53 cents a share, down from 56 cents reported in the year-ago period.
What the Zacks Model Unveils
Our proven model doesn’t 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, which isn’t the case here, as elaborated below. 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 #4 (Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank #2. LULU is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago fiscal quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
lululemon athletica’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year fiscal quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #3, currently. BJ is likely to register top-line growth from the prior-year fiscal quarter’s tally when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for Dollar General’s earnings in the fiscal third quarter is pegged at $2.54 per share, suggesting 22.1% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Costco (COST - Free Report) currently has an Earnings ESP of +0.17% and a Zacks Rank of 3. COST is expected to register top and bottom-line growth from the respective year-ago fiscal quarter’s actuals when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $54.98 billion, suggesting 9.2% growth from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for Costco’s quarterly earnings has been stable in the past 30 days at $3.15 a share. The consensus estimate for earnings suggests 6.1% growth from the year-ago fiscal quarter’s reported number. COST delivered an earnings beat of 7.7%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.