NEW YORK, NY / ACCESSWIRE / May 4, 2018 / Sprouts Farmers Market saw big losses in Thursday's trading session after announcing that it has ended its Prime Now delivery partnership with Amazon. The company also lowered its guidance for the full year. Shares of TreeHouse on the other hand were seeing big gains after delivering solid numbers in its first quarter earnings report.
RDI Initiates Coverage on:
Sprouts Farmers Market, Inc.
TreeHouse Foods, Inc.
Sprouts Farmers Market, Inc. shares were deep in the red yesterday, closing the day down 13.28% on higher volume than usual at roughly 7.6 million shares traded. A couple of developments led to the downfall of Sprouts shares on Thursday. The company announced that it has ended its Prime Now delivery partnership with Amazon.com on May 1st. It also cut its full-year sales targets. CEO Amin Maredia stated, "The transition will impact comps for the next several quarters, but we remain very confident about growing our home delivery business as it brings a unique health and value proposition to our customers." It was earlier in the year that Sprouts started delivering groceries through Instacart and the company will continue to do so as well as expand to major markets. The Company has revised its sales growth forecast downwards. The company now expects its sales to grow in the range of 10.5% to 11.5% compared to the earlier range of 11.5% to 12.5%. Same store sales growth is also revised down to range between 1.5% to 2.5% versus the previous range of 2.5%to 3.5%.
Access RDI's Sprouts Farmers Market, Inc. Research Report at:
TreeHouse Foods, Inc. shares closed up 8.77% on Thursday on volume roughly three times higher than usual after the company reported a solid earnings report. The private-label packaged food supplier reported its first quarter results on Thursday that were in the upper end of what the company had guided previously. Revenue for the quarter was $1.48 billion, a 3.6% decrease. It was still better than the $1.44 billion that analysts had expected. Adjusted earnings per share at $0.18 was also a decrease from the $0.61 the company pasted in the year ago quarter, but still beat the $0.13 that analysts had expected. TreeHouse CEO Steve Oakland commented, "Our work to address near-term challenges such as margin recovery is ongoing. More broadly, we are working to better position ourselves to address the evolving retail landscape. As a private label industry leader, we are in the ideal position within food and beverage, as private label continues to grow at the expense of brands." Looking ahead the company has forecast EPS for the full year in the range of $2 to $2.40. Analysts are expecting $2.10. For the current quarter the company expects EPS in the range of $0.20 to $0.30. Analysts however are waiting for $0.34.
Access RDI's TreeHouse Foods, Inc. Research Report at:
Research Driven Investing
We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.
RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.
Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker-dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.
For any questions, inquiries, or comments reach out to us directly at:
Research Driven Investing, Unit #901 511 Avenue of the Americas, New York, NY, 10011
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.