Sprouts Farmers Market (NASDAQ:SFM) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• Sprouts Farmers Market missed quarterly expectations: EPS came in at $1.21 versus the $1.23 consensus estimate, while revenue of $2.30 billion was below forecasts of $2.33 billion.
• The stock fell 3.7% to $62.00 following the results, near its 12-month low of $60.47 and well below its 50-day and 200-day moving averages.
• Analysts maintain a consensus “Hold” rating with an average price target of $87.92, while insiders have sold 46,041 shares worth approximately $3.46 million over the past 90 days.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $1.21 EPS for the quarter, missing the consensus estimate of $1.23 by ($0.02), FiscalAI reports. Sprouts Farmers Market had a net margin of 5.58% and a return on equity of 34.84%. The firm had revenue of $2.30 billion for the quarter, compared to analysts' expectations of $2.33 billion.

Sprouts Farmers Market Trading Down 3.7%

NASDAQ:SFM traded down $2.41 during trading hours on Wednesday, hitting $62.00. 5,838,987 shares of the stock were exchanged, compared to its average volume of 2,343,422. The company has a market capitalization of $5.78 billion, a P/E ratio of 11.88, a price-to-earnings-growth ratio of 1.68 and a beta of 0.67. The company has a quick ratio of 0.43, a current ratio of 0.99 and a debt-to-equity ratio of 0.07. Sprouts Farmers Market has a twelve month low of $60.47 and a twelve month high of $106.04. The company's 50 day moving average is $71.22 and its two-hundred day moving average is $76.67.

Insider Buying and Selling at Sprouts Farmers Market

In other news, Director Joseph D. O'leary sold 2,597 shares of Sprouts Farmers Market stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $82.57, for a total transaction of $214,434.29. Following the sale, the director directly owned 14,710 shares of the company's stock, valued at approximately $1,214,604.70. This trade represents a 15.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Jack Sinclair sold 10,788 shares of the stock in a transaction on Monday, October 5th. The stock was sold at an average price of $64.48, for a total value of $695,610.24. Following the completion of the transaction, the chief executive officer owned 269,980 shares in the company, valued at approximately $17,408,310.40. This represents a 3.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 46,041 shares of company stock worth $3,460,383 in the last ninety days. 1.30% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several equities research analysts have issued reports on SFM shares. The Goldman Sachs Group set a $94.00 target price on Sprouts Farmers Market in a research note on Monday, October 19th. UBS Group reiterated a "neutral" rating and issued a $74.00 target price on shares of Sprouts Farmers Market in a research note on Monday. Deutsche Bank Aktiengesellschaft cut their price target on shares of Sprouts Farmers Market from $84.00 to $77.00 and set a "hold" rating for the company in a report on Friday, September 25th. JPMorgan Chase & Co. decreased their price objective on Sprouts Farmers Market from $103.00 to $90.00 and set an "overweight" rating on the stock in a research note on Tuesday, October 6th. Finally, Evercore reaffirmed an "outperform" rating and set a $95.00 price target on shares of Sprouts Farmers Market in a research report on Tuesday, September 1st. Seven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $87.92.

About Sprouts Farmers Market

Sprouts Farmers Market, Inc NASDAQ: SFM is a specialty grocery retailer focused on fresh, natural and organic foods. Its stores offer a broad selection of fresh produce, meat and seafood, dairy products, bulk foods, vitamins and supplements, pantry staples, bakery items, deli products and prepared foods. The company emphasizes products that support healthy eating, including organic, plant-based and specialty-diet options.

Founded in 2002, Sprouts Farmers Market grew from its first store in Chandler, Arizona, into a national grocery chain.

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