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Sprouts Farmers (SFM) Q4 Earnings Coming Up: Factors to Note

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·5 min read
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Sprouts Farmers Market, Inc. SFM is likely to register a decline in the top line when it reports fourth-quarter 2021 earnings on Feb 24, after the market closes. The Zacks Consensus Estimate for revenues stands at $1,454 million, indicating a decline of 9.2% from the prior-year reported figure.

The bottom line of this grocery retailer is also expected to decrease year over year. The Zacks Consensus Estimate for fourth-quarter earnings per share has been stable at 29 cents over the past 30 days. The figure suggests a sharp decrease from earnings of 59 cents reported in the year-ago period.

For 2021, the consensus mark for revenues is pegged at $6.06 billion, which indicates a decline of 6.3% from last year. Again, the consensus mark for full-year earnings per share stands at $2.07, suggesting a slump of 16.9% from the year-ago period.

Factors to Note

Sprouts Farmers has been witnessing a pullback in demand and facing tough year-over-year comparisons in sales as COVID-19 benefits are lapped. This is likely to get reflected in the company’s top-line results. The company had guided fourth-quarter 2021 net sales between $1,450 million and $1,475 million compared with $1,601.8 million reported in the year-ago period. It projected a decline of 3-5% in comparable stores sales.

Meanwhile, ongoing inflationary trends in labor and transportation are also a cause of concern for the company. Such downsides are likely to have been a drag on the company’s margins as well as bottom line for the quarter under discussion. It had forecast fourth-quarter adjusted earnings between 26 cents and 30 cents a share, which suggests a decrease from prior-year quarter’s tally of 59 cents.

Nevertheless, the company has been focusing on growth related initiatives such as innovating products especially in the natural organic space and expanding private-label offering. It has also been boosting online sales by strengthening omni-channel capabilities such as deliveries and features on its website and mobile app. It has been focusing on targeted marketing with everyday great pricing and creating a supply chain that provides the freshest produce. Such upsides are likely to have provided some cushion to the company’s performance during the quarter in review.

Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise

Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise
Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise

Sprouts Farmers Market, Inc. price-consensus-eps-surprise-chart | Sprouts Farmers Market, Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Sprouts Farmers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sprouts Farmers currently has a Zacks Rank #2 but an Earnings ESP of 0.00%.

3 Stocks With Favorable Combination

Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Lowe's LOW currently has an Earnings ESP of +6.81% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.71 suggests growth of 28.6% from the year-ago quarter’s reported figure.

Lowe's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $20.82 billion, indicating an increase of 2.5% from the year-ago quarter. LOW has a trailing four-quarter earnings surprise of 14.3%, on average.

Casey's CASY currently has an Earnings ESP of +15.39% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.43 suggests an increase of 37.5% from the year-ago reported number.

Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.08 billion, which suggests an increase of 53.2% from the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 20.1%, on average.

Costco COST currently has an Earnings ESP of +0.75% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.67 suggests an increase of 24.8% from the year-ago quarter’s reported figure.

Costco's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.05 billion, which indicates an improvement of 14% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 8.3%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report

Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report

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