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What's in Store for Sprouts Farmers' (SFM) Q1 Earnings?

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Sprouts Farmers Market, Inc. SFM is likely to register an increase in the top line when it reports first-quarter 2022 earnings on May 4, after the market closes. The Zacks Consensus Estimate for revenues stands at $1,645 million, indicating an increase of 4.4% from the prior-year reported figure.

The bottom line of this grocery retailer is expected to increase year over year. The Zacks Consensus Estimate for first-quarter earnings per share has been stable at 72 cents over the past 30 days. The figure suggests growth of 2.9% from the year-ago period.

Factors to Note

Sprouts Farmers' focus on product innovation, customer experience, and targeted marketing with everyday great pricing and technology bodes well. It has been steadily expanding its presence in the natural organic space, given the huge demand in the segment. Management has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller format stores. Apart from these, the company has been trying to expand private-label offerings.

Cumulatively, the aforementioned factors are likely to have favorably impacted the top-line performance. Sprouts Farmers has guided 0-2% growth in comparable stores sales for first-quarter 2022 against a decline of 9.4% reported in the year-ago period.

Sprouts Farmers is focused on creating a robust omni-channel experience. The company has been providing hassle-free shopping through the Sprouts.com website and mobile app, as well as creating a supply chain that provides the freshest produce while updating store prototypes. We note that an in-store Pick-up & Delivery facility is available to all customers across all stores and markets. Such initiatives help in expanding the customer base, and in turn, revenues.

Despite these tailwinds, high labor costs amid the tight labor market, increased freight costs, and supply chain issues remain concerns. These might have weighed on the company's margins.

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:

Costco COST currently has an Earnings ESP of +1.39% and a Zacks Rank #2. The company is likely to register bottom-line improvement when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.03 suggests an improvement from $2.75 reported in the year-ago quarter.

Costco's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues stands at $50.84 billion, which indicates an improvement of 12.3% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 13.3%, on average.

Performance Food Group Company PFGC currently has an Earnings ESP of +10.17% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of 51 cents suggests growth from 19 cents in the year-ago quarter.

Performance Food Group Company's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $13.11 billion, indicating an increase of 82% from the figure reported in the year-ago quarter. PFGC has a trailing four-quarter earnings surprise of 1.5%, on average.

Boot Barn Holdings BOOT currently has an Earnings ESP of +2.44% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.30 suggests growth from 75 cents reported in the year-ago quarter.

Boot Barn Holdings' top line is anticipated to improve year over year. The consensus mark for revenues is pegged at $345.2 million, indicating an increase of 33.3% from the figure reported in the year-ago quarter.

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


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Costco Wholesale Corporation (COST) : Free Stock Analysis Report

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