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Sprouts Farmers Market: 4Q17 Earnings Preview

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Sprouts Farmers Market’s 4Q17 preview

Sprouts Farmers Market (SFM) is scheduled to release its 4Q17 results on February 22, 2018. The results relate to the three months ending on December 31, 2017.

Wall Street analysts have predicted a 15.4% YoY (year-over-year) increase in Sprouts Farmers Market’s earnings to $0.15 per share. The total sales are expected to increase ~16% YoY to $1.14 billion. The company cruised ahead of analysts’ top and bottom-line expectations in all three of the reported quarters in the current fiscal year.

Investors looking to invest in Sprouts Farmers Market through ETFs could consider the PowerShares Dynamic Food & Beverage Portfolio (PBJ). Sprouts Farmers Market has a weight of ~3.4% in PBJ.

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Valuations and recommendations

Currently, Sprouts Farmers Market is trading at a one-year forward earnings multiple of 22.6x—compared to a three-year average of 25.3x. The company trades at a premium to supermarket chains Kroger (KR) and Supervalu (SVU), which are valued at 13.4x and 5.4x, respectively.

What’s in this series?

In this series, we’ll provide a preview of Sprouts Farmers Market’s 4Q17 results. We’ll discuss the company’s year-to-date financial performance and expectations for the coming quarter. We’ll also discuss Sprouts Farmers Market’s stock market performance and analysts’ recommendations.

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