Whole Foods Market Earnings: Here’s Why Investors are Selling Shares Now
Whole Foods Market, Inc. (NASDAQ:WFM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.23%.
Whole Foods Market, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 30% to $0.78 in the quarter versus EPS of $0.65 in the year-earlier quarter.
Revenue: Rose 13.98% to $3.87 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Whole Foods Market, Inc. reported adjusted EPS income of $0.78 per share. By that measure, the company beat the mean analyst estimate of $0.77. It missed the average revenue estimate of $3.87 billion.
Quoting Management: “We opened a record number of stores and delivered another quarter of strong sales and earnings growth,” said Walter Robb, co-chief executive officer of Whole Foods Market. “We are well-positioned to internally fund our expansion plans and have the pipeline and infrastructure in place for square footage growth to accelerate through 2014 and hopefully beyond.”
Key Stats (on next page)…
Revenue increased 32.81% from $2.91 billion in the previous quarter. EPS increased 30% from $0.60 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.74 and has not changed. For the current year, the average estimate has moved up from a profit of $2.89 to a profit of $2.9 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)