Sprouts (SFM) to Report Earnings Tomorrow: Here’s What to Expect

Grocery chain Sprouts Farmers Market (NASDAQ:SFM) is set to report earnings tomorrow after market hours. Here’s what to expect.

Sprouts beat analyst revenue expectations by 1.9% in the latest quarter, reporting revenue of $1.88 billion, up 8.7% year over year. It was a very strong quarter for the company, with an upbeat earnings outlook for the next quarter and a decent beat on analyst estimates.

Is Sprouts a buy or sell in terms of earnings? Read our full analysis here, it’s free.

Analysts are expecting Sprouts revenue to rise 8.4% year over year to $1.83 billion this quarter, up from 6.1% growth in the same quarter last year. Adjusted earnings are expected to come in at $0.78 per share.

Most analysts covering the company have reaffirmed their estimates over the past 30 days, suggesting they expect the company to maintain its earnings trajectory. Sprouts has a history of beating Wall Street expectations, beating revenue estimates by an average of 1% each time over the past two years.

With Sprouts being the first company in its industry to report earnings this season, we have little guidance on what the quarter will look like for nondiscretionary retail stocks. However, investor sentiment is strong in this segment, with shares up an average of 3.3% over the past month. Sprouts is up 4.8% in that same time frame and is on track for earnings with an average analyst price target of $71.80 (compared to the current share price of $87.54).

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