Sprouts Farmers Market, Inc. SFM is set to announce its third-quarter 2024 earnings results on Oct. 30 after the market closes, and all eyes are on the grocer’s comparable store sales. With consumer preferences increasingly shifting toward fresh and organic foods, Sprouts Farmers has positioned itself as a standout in the natural foods segment. However, the question remains: Will the company’s third-quarter results demonstrate sustained momentum in comparable store sales, or will recent economic pressures hinder its growth trajectory?
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Insights Into Sprouts Farmers’ Comparable Sales
Building on the solid 6.7% growth in comparable store sales achieved in the second quarter, Sprouts Farmers is expected to have maintained this positive momentum. This reflects the ongoing consumer demand for natural and organic products and the effectiveness of the company's strategic initiatives.
Sprouts Farmers is likely to have benefited from its focus on convenient, health-centric meal solutions. With more customers seeking nutritious, ready-to-eat options, Sprouts Farmers’ expanded range of grab-and-go meals, healthy snacks and prepared foods provides a practical solution that supports repeat purchases and drives in-store traffic.
Enhanced inventory management is also likely to have played a key role in driving comparable store sales growth. Sprouts Farmers has invested in upgrading inventory systems and category management capabilities, enabling stores to stock fresher and more relevant products. This has resulted in fewer stockouts and waste, ensuring that shelves are consistently filled with desirable items that meet customers’ health and wellness needs.
Advancements in online ordering and e-commerce logistics have strengthened Sprouts Farmers’ ability to meet demand efficiently, allowing the brand to maintain and grow customer loyalty across physical and digital channels. The combination of an expanded reach, a developing loyalty program and a robust lineup of private label offerings encourages return visits and increases basket sizes, contributing to comparable store sales growth.
Given these factors, we anticipate a favorable impact on Sprouts Farmers’ top line. For the quarter under review, we expect comparable store sales growth of about 4%.
Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise
Sprouts Farmers Market, Inc. price-consensus-eps-surprise-chart | Sprouts Farmers Market, Inc. Quote
How Do Consensus Estimates Measure Up for SFM?
The favorable trends observed in the second quarter, including decent comparable store sales growth and successful e-commerce initiatives, are anticipated to persist in the third quarter, positioning Sprouts Farmers for continued success in a dynamic retail environment.
The Zacks Consensus Estimate for third-quarter revenues stands at $1.87 billion, which indicates an increase of 9.2% from the prior-year reported figure. On the earnings front, the consensus estimate has risen by a penny to 76 cents a share over the past seven days, implying a 16.9% year-over-year increase.
Sprouts Farmers has an Earnings ESP of +9.84% and a Zacks Rank #1 (Strong Buy). The combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) 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:
Performance Food Group Company PFGC currently has an Earnings ESP of +0.33% and carries a Zacks Rank #2. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share is pegged at $1.22, up 6.1% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance Food’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.34 billion, which indicates an increase of 2.7% from the figure reported in the prior-year quarter. PFGC has a trailing four-quarter earnings surprise of 1.3%, on average.
Mondelez International MDLZ currently has an Earnings ESP of +0.82% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 84 cents suggests a rise of 2.4% from the year-ago reported number.
Mondelez International’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.1 billion, which suggests a marginal increase of 0.5% from the prior-year quarter. MDLZ has a trailing four-quarter earnings surprise of 7.8%, on average.
US Foods Holding Corp. USFD currently has an Earnings ESP of +0.69% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports third-quarter 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of 82 cents a share calls for a jump of 17.1% from the year-ago reported number.
US Foods Holding’s top line is anticipated to advance year over year. The consensus mark for revenues is pegged at $9.7 billion, indicating an increase of 6.6% from the figure reported in the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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