The upcoming report from Sprouts Farmers (SFM) is expected to reveal quarterly earnings of $1.67 per share, indicating a decline of 7.7% compared to the year-ago period. Analysts forecast revenues of $2.33 billion, representing an increase of 4% year over year.
The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Sprouts Farmers metrics that are commonly monitored and projected by Wall Street analysts.
The combined assessment of analysts suggests that 'Comparable store sales growth' will likely reach -2.3%. Compared to the present estimate, the company reported 11.7% in the same quarter last year.
According to the collective judgment of analysts, 'Stores at end of period' should come in at 485 . The estimate is in contrast to the year-ago figure of 443 .
Based on the collective assessment of analysts, 'New Stores Opened' should arrive at 7 . The estimate compares to the year-ago value of 3 .
The consensus among analysts is that 'Stores at beginning of period' will reach 477 . The estimate is in contrast to the year-ago figure of 440 .
View all Key Company Metrics for Sprouts Farmers here>>>Over the past month, Sprouts Farmers shares have recorded returns of -6.1% versus the Zacks S&P 500 composite's +8.1% change. Based on its Zacks Rank #4 (Sell), SFM will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).