A Look at Sprouts Farmers Market ahead of Its 1Q16 Results


May. 2 2016, Updated 11:19 a.m. ET

Sprouts Farmers Market’s 1Q16 results preview

Based in Phoenix, Arizona, Sprouts Farmers Market (SFM) is slated to release its financial results for 1Q16 on Thursday, May 5, 2016. The company topped analyst revenue and earnings estimates in the final quarter of 2015.

Revenue for 4Q15 stood at $930 million, around $20 million, or 2.4%, higher than the consensus revenue estimate. The company reported EPS (earnings per share) of $0.18, ~15% more than the average analyst EPS estimate of $0.16.

Sprouts Farmers Market (SFM) is expected to have a solid start to fiscal 2016. Wall Street is expecting SFM’s 1Q16 EPS to register a massive 14.4% YoY (year-over-year) increase to $0.30.

Sales are predicted to touch the $1 billion mark in 1Q16, registering an 18% YoY growth. On average, the 22 analysts that cover the company rate the stock a 2.2 on a scale of one (buy) to five (sell).

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About Sprouts Farmers Market

Established in 2002, Sprouts Farmers Market (SFM) operates as a value-oriented healthy grocery store that offers fresh natural and organic food. The company operates 217 stores in 13 US states, as of December 31, 2015. It follows a small-box format with an average store size of 28,000–30,000 square feet, which is about half the size of Whole Foods Market’s (WFM) stores and one-third the size of Kroger’s (KR) combination stores.

SFM has delivered strong financial performance, even as increasing competition has started to weigh on the results of its competitors Whole Foods Market (WFM) and The Fresh Market (TFM).

Investors looking for diversified exposure to Sprouts Farmers Market (SFM) can invest in the Guggenheim S&P MidCap 400 Pure Growth ETF (RFG). SFM has a weight of ~1.8% in RFG.

What’s in this series?

This series is an earnings preview of Sprouts Farmers Market’s (SFM) 1Q16 results. We’ll look at the company’s financial performance and its key drivers, take a look at the management guidance, evaluate the company’s stock performance, and look at its current valuation compared to its peers.

The company’s peer set in this series will include Kroger (KR), Whole Foods Market (WFM), The Fresh Market (TFM), and SuperValu (SVU).


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