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Sprouts Farmers (SFM) to Report Q2 Earnings: Factors to Note
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Sprouts Farmers Market, Inc. (SFM - Free Report) is likely to register an increase in the top line when it reports second-quarter 2023 earnings on Aug 1 after market close. The Zacks Consensus Estimate for revenues stands at $1,691 million, indicating an increase of 6% from the prior-year reported figure.
The bottom line of this grocery retailer is also expected to have increased year over year. Over the past seven days, the Zacks Consensus Estimate for second-quarter earnings per share has risen by a penny to 64 cents, suggesting an increase of 12.3% from the year-ago quarter.
Sprouts Farmers has a trailing four-quarter earnings surprise of 13.9%, on average. In the last reported quarter, this Phoenix, AZ-based company surpassed the Zacks Consensus Estimate by a margin of 15.3%.
Factors to Consider
Sprouts Farmers' focus on product innovation, technology and targeted marketing with everyday great pricing bodes well. It has been steadily expanding its presence in the natural organic space, given the huge demand in the segment. Management has been lowering operational complexity, optimizing production, improving the in-stock position and updating to smaller-format stores. Apart from these, the company has been trying to expand private-label offerings.
Cumulatively, the aforementioned factors are likely to have favorably impacted the top line. On its last earnings call, Sprouts Farmers guided comparable store sales growth of about 3% for the second quarter. This is in sync with our estimate. The company guided adjusted earnings in the band of 61-65 cents a share compared with 57 cents a share in the year-ago period.
Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise
Sprouts Farmers is focused on creating a robust omnichannel experience. The company has been providing hassle-free shopping through the Sprouts.com website and mobile app and creating a supply chain that provides the freshest produce. We note that an in-store Pick-up & Delivery facility is available to all customers across all stores and markets. Such initiatives have been helping Sprouts Farmers expand its customer base and revenues.
Despite these tailwinds, elevated marketing spends, an increase in labor costs and higher utility costs remain concerns. These might have weighed on the company's margins. We expect SG&A expenses to have deleveraged 50 basis points, with the operating margin expected to have contracted 10 basis points to 5.3% during the quarter under review.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Sprouts Farmers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Sprouts Farmers has an Earnings ESP of +3.58% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Arhaus (ARHS - Free Report) currently has an Earnings ESP of +7.69% and a Zacks Rank #1. The company is expected to register a bottom-line decline when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 26 cents suggests a decrease of 7.1% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arhaus’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $325.7 million, indicating an increase of 6.3% from the figure reported in the year-ago quarter. ARHS has a trailing four-quarter earnings surprise of 82.4%, on average.
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +11.50% and carries a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.14 suggests a rise of 2.7% from the year-ago quarter.
Ross Stores’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.72 billion, which indicates a rise of 3% from the figure reported in the prior-year quarter. ROST has a trailing four-quarter earnings surprise of 11.5%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.73% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.73 suggests a rise of 12.6% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.92 billion, which calls for an increase of 9.5% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
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Sprouts Farmers (SFM) to Report Q2 Earnings: Factors to Note
Sprouts Farmers Market, Inc. (SFM - Free Report) is likely to register an increase in the top line when it reports second-quarter 2023 earnings on Aug 1 after market close. The Zacks Consensus Estimate for revenues stands at $1,691 million, indicating an increase of 6% from the prior-year reported figure.
The bottom line of this grocery retailer is also expected to have increased year over year. Over the past seven days, the Zacks Consensus Estimate for second-quarter earnings per share has risen by a penny to 64 cents, suggesting an increase of 12.3% from the year-ago quarter.
Sprouts Farmers has a trailing four-quarter earnings surprise of 13.9%, on average. In the last reported quarter, this Phoenix, AZ-based company surpassed the Zacks Consensus Estimate by a margin of 15.3%.
Factors to Consider
Sprouts Farmers' focus on product innovation, technology and targeted marketing with everyday great pricing bodes well. It has been steadily expanding its presence in the natural organic space, given the huge demand in the segment. Management has been lowering operational complexity, optimizing production, improving the in-stock position and updating to smaller-format stores. Apart from these, the company has been trying to expand private-label offerings.
Cumulatively, the aforementioned factors are likely to have favorably impacted the top line. On its last earnings call, Sprouts Farmers guided comparable store sales growth of about 3% for the second quarter. This is in sync with our estimate. The company guided adjusted earnings in the band of 61-65 cents a share compared with 57 cents a share in the year-ago period.
Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise
Sprouts Farmers Market, Inc. price-consensus-eps-surprise-chart | Sprouts Farmers Market, Inc. Quote
Sprouts Farmers is focused on creating a robust omnichannel experience. The company has been providing hassle-free shopping through the Sprouts.com website and mobile app and creating a supply chain that provides the freshest produce. We note that an in-store Pick-up & Delivery facility is available to all customers across all stores and markets. Such initiatives have been helping Sprouts Farmers expand its customer base and revenues.
Despite these tailwinds, elevated marketing spends, an increase in labor costs and higher utility costs remain concerns. These might have weighed on the company's margins. We expect SG&A expenses to have deleveraged 50 basis points, with the operating margin expected to have contracted 10 basis points to 5.3% during the quarter under review.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Sprouts Farmers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Sprouts Farmers has an Earnings ESP of +3.58% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Arhaus (ARHS - Free Report) currently has an Earnings ESP of +7.69% and a Zacks Rank #1. The company is expected to register a bottom-line decline when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 26 cents suggests a decrease of 7.1% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arhaus’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $325.7 million, indicating an increase of 6.3% from the figure reported in the year-ago quarter. ARHS has a trailing four-quarter earnings surprise of 82.4%, on average.
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +11.50% and carries a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.14 suggests a rise of 2.7% from the year-ago quarter.
Ross Stores’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.72 billion, which indicates a rise of 3% from the figure reported in the prior-year quarter. ROST has a trailing four-quarter earnings surprise of 11.5%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.73% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.73 suggests a rise of 12.6% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.92 billion, which calls for an increase of 9.5% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.