Sprouts Farmers (SFM) Q4 Earnings Coming Up: Insights Into Comps
Market watchers are eagerly awaiting Sprouts Farmers Market, Inc.’s SFM fourth-quarter 2023 earnings results, scheduled to be reported on Feb 22 after market close. This time, too, investors’ focus will center around comparable store sales, the key metric to gauge the company’s performance.
We believe Sprouts Farmers’ commitment to offering unique in-store and online experiences, differentiated products and superior customer service is expected to drive fourth-quarter results.
Insights Into Comparable Sales
Building on the solid 3.9% growth in comparable store sales achieved in the third quarter, Sprouts Farmers is expected to have maintained its positive momentum, reflecting sustained consumer demand for natural and organic products, as well as the effectiveness of the company's strategic initiatives.
From targeting specific customer segments like health enthusiasts and innovation seekers to providing differentiated products and experiences, Sprouts has cultivated a loyal customer base and strengthened its market position. Additionally, investments in digital innovation, omnichannel capabilities and product assortment have further enhanced Sprouts' appeal and contributed to comparable store sales growth.
Categories such as perishables, including meat, dairy and produce, have shown particular strength in driving comparable store sales growth, supported by Sprouts' commitment to offering high-quality, fresh and organic products. Additionally, the success of Sprouts' private label brand, Sprouts brand, highlights the company's ability to differentiate itself in the market and drive customer loyalty.
Cumulatively, the aforementioned factors are likely to have favorably impacted the top line. We expect comparable store sales growth of 3% for the quarter under review.
Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise
Sprouts Farmers Market, Inc. price-consensus-eps-surprise-chart | Sprouts Farmers Market, Inc. Quote
How Are Estimates Shaping Up?
The favorable trends observed in the third quarter, including decent comparable store sales growth and successful e-commerce initiatives, are anticipated to have persisted in the fourth quarter, positioning Sprouts Farmers for continued success in a dynamic retail environment.
The Zacks Consensus Estimate for revenues stands at $1,690 million, indicating an increase of 7.2% from the prior-year reported figure. The consensus mark for earnings per share has been stable at 45 cents over the past 30 days. The figure suggests growth of roughly 7.1% from the year-ago period.
Sprouts Farmers has an Earnings ESP of +4.52% and a Zacks Rank #2 (Buy). The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these, too, have the right combination of elements to post an earnings beat:
Costco COST currently has an Earnings ESP of +1.58% and carries a Zacks Rank #2. The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings per share is pegged at $3.60, up 9.1% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $59.2 billion, which indicates an increase of 7.1% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
Ollie's Bargain OLLI currently has an Earnings ESP of +1.12% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.16 suggests a rise of 38.1% from the year-ago reported number.
Ollie's Bargain’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $649.1 million, which suggests an increase of 18.1% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 7%, on average.
Burlington Stores BURL currently has an Earnings ESP of +1.17% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.25 suggests a rise of 9.8% from the year-ago quarter.
Burlington Stores’ top line is anticipated to advance year over year. The consensus mark for revenues is pegged at $3.02 billion, indicating an increase of 9.9% from the figure reported in the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 9.4%, on average.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
