Whole Foods Market Earnings: Profits CLIMB By Double Figures AGAIN
S&P 500 (NYSE:SPY) component Whole Foods Market Inc. (NASDAQ:WFM) reported its results for the third quarter. Whole Foods Market owns and operates a chain of natural and organic foods supermarkets. Its products include seafood, grocery, meat and poultry, bakery and prepared foods.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
Whole Foods Market Inc. Earnings Cheat Sheet
Results: Net income for Whole Foods Market Inc. rose to $116.8 million (63 cents per share) vs. $88.5 million (50 cents per share) in the same quarter a year earlier. This marks a rise of 32.1% from the year-earlier quarter.
Revenue: Rose 13.6% to $2.73 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Whole Foods Market Inc. beat the mean analyst estimate of 61 cents per share. Analysts were expecting revenue of $2.73 billion.
Quoting Management: “In an economic environment that is proving to be difficult for many retailers, we are thriving and pleased to report another quarter of strong growth and excellent results for our stakeholders,” said Walter Robb, co-chief executive officer of Whole Foods Market. “Our accelerated growth plans are on track, and we believe we will continue to gain market share through further differentiating our shopping experience, improving our relative value positioning, and reinforcing our position as America’s healthiest grocery store.”
For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 12.7%, with the biggest boost coming in the most recent quarter when revenue rose 13.6% from the year earlier quarter.
The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 30.8% and in the first quarter, the figure rose 33.4%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the second quarter, by 5 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.
Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 57 cents per share, up from 53 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $2.34 per to share to $2.47.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: