The Fresh Market Third Quarter Earnings Sneak Peek

The Fresh Market Inc (NASDAQ:TFM) will unveil its latest earnings on Wednesday, November 28, 2012. Fresh Market is a specialty food retailer. The company operates a chain of stores that retail fresh premium perishable food items. Fresh Market operates in the southeastern, midwestern and mid-Atlantic states.

The Fresh Market Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 26 cents per share, a rise of 36.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 24 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 26 cents during the last month. Analysts are projecting profit to rise by 29.9% compared to last year’s $1.39.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of 28 cents per share against the mean estimate of 27 cents. In the prior quarter, the company reported net income of 40 cents.

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A Look Back: In the second quarter, profit rose 26.9% to $13.3 million (28 cents a share) from $10.5 million (22 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 20.6% to $313 million from $259.5 million.

Wall St. Revenue Expectations: On average, analysts predict $318.1 million in revenue this quarter, a rise of 20.8% from the year-ago quarter. Analysts are forecasting total revenue of $1.34 billion for the year, a rise of 20.7% from last year’s revenue of $1.11 billion.

Stock Price Performance: From October 24, 2012 to November 21, 2012, the stock price rose $4.44 (8%), from $55.69 to $60.13. The stock price saw one of its best stretches over the last year between January 12, 2012 and January 25, 2012, when shares rose for nine straight days, increasing 15.6% (+$6.20) over that span. It saw one of its worst periods between October 5, 2012 and October 15, 2012 when shares fell for seven straight days, dropping 7.2% (-$4.35) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 17.3% over the last four quarters.

Analyst Ratings: There are mostly holds on the stock with eight of 15 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.8 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)