Earnings To Watch: Sprouts (SFM) Reports Q4 Results Tomorrow

Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) will be reporting results tomorrow after market hours. Here’s what investors should know.

Sprouts beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $1.95 billion, up 13.6% year on year. It was a stunning quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

Is Sprouts a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sprouts’s revenue to grow 15.6% year on year to $1.96 billion, improving from the 7.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sprouts has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.6% on average.

With Sprouts being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for non-discretionary retail stocks. However, the whole sector has faced a sell-off over the last month with stocks in Sprouts’s peer group down 2.9% on average. Sprouts is up 16.8% during the same time and is heading into earnings with an average analyst price target of $141 (compared to the current share price of $171.74).

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