S&P 500 (NYSE:SPY) component Whole Foods Market Inc. (NASDAQ:WFM) reported net income above Wall Street’s expectations for the second 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.
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Whole Foods Market Earnings Cheat Sheet for the Second Quarter
Results: Net income for Whole Foods Market Inc. rose to $117.7 million (64 cents per share) vs. $89.9 million (51 cents per share) in the same quarter a year earlier. This marks a rise of 30.8% from the year-earlier quarter.
Revenue: Rose 13.6% to $2.67 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Whole Foods Market Inc. beat the mean analyst estimate of 59 cents per share. Analysts were expecting revenue of $2.67 billion.
Quoting Management: “We are pleased to report another outstanding quarter, producing the best results in our company’s thirty-two year history,” said John Mackey, co-founder and co-chief executive officer of Whole Foods Market. “Our consistent execution and strong capital disciplines have been delivering record returns to our shareholders.”
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 12.3%, 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 first quarter, net income rose 33.4% and in the fourth quarter of the last fiscal year, the figure rose 31.3%.
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 5 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.
Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to 58 cents per share from 57 cents. Over the past three months, the average estimate for the fiscal year has climbed from $2.26 per to share to $2.34.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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