Research Desk Line-up: Weis Markets Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 23, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Sprouts Farmers Market, Inc. (NASDAQ: SFM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SFM, following the Company's disclosure of its financial results on August 03, 2017, for the second quarter fiscal 2017. The Company's revenue increased 14.6% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Grocery Stores industry. Pro-TD has currently selected Weis Markets, Inc. (NYSE: WMK) for due-diligence and potential coverage as the Company reported on August 02, 2017, its financial results for Q2 which ended on July 01, 2017. Register for a free membership today, and be among the early birds that get access to our report on Weis Markets when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SFM; also brushing on WMK. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=SFM
http://protraderdaily.com/optin/?symbol=WMK
Earnings Reviewed
For three months ended July 02, 2017, Sprouts Farmers Market's revenue increased 14.6% to $1.18 billion on a y-o-y basis from $1.03 billion in Q2 FY16. The increase was primarily due to strong performance in new stores opened and a 1.4% increase in comparable store sales. The revenue surpassed analysts' expectations of $1.17 billion.
During Q2 FY17, Sprouts Farmers Market's gross profit increased 11.8% to $341.99 million from $305.80 million in Q2 FY16. For the reported quarter, the Company's gross margin decreased 70 basis points to 29% of revenue from 29.7% of revenue in Q2 FY16. The decrease was due to modest cost inflation and higher occupancy costs.
During Q2 FY17, Sprouts Farmers Market's direct store expenses increased 14% to $236.19 million from $207.21 million in Q2 FY16. For the reported quarter, the Company's selling, general, and administrative expenses (SG&A) increased 23.5% to $38.19 million from $30.92 million in Q2 FY16. The increase was attributable to higher compensation expenses and other corporate costs.
For the reported quarter, Sprouts Farmers Market's EBITDA increased 4.3% to $87.20 million from $83.63 million in Q2 FY16. During Q2 FY17, the Company's EBIT increased 8 basis points to $63.60 million from $63.55 million in the same quarter last year.
For Q2 FY17, Sprouts Farmers Market's net income increased 10.1% to $40.97 million on a y-o-y basis compared to net income of $37.21 million in Q2 FY16. During Q2 FY17, the Company's EPS increased 20% to $0.30 on a y-o-y basis from $0.25 in Q2 FY16. For the reported quarter, the Company's diluted EPS increased 16% to $0.29 on a y-o-y basis from $0.25 in Q2 FY16. The increase was primarily due to higher sales and a lower effective tax rate. The diluted EPS surpassed analysts' expectations of $0.25.
Balance Sheet
As on July 02, 2017, Sprouts Farmers Market's cash and cash equivalents increased 18.8% to $14.81 million from $12.47 million in Q4 FY16. For the reported quarter, the Company's inventories increased 6.8% to $218.40 million from $204.46 million in Q4 FY16.
For the reported quarter, Sprouts Farmers Market's long-term debt was $310.00 million compared to $255.00 million in Q4 FY16.
During H1 FY17, Sprouts Farmers Market's cash flow from operating activities increased 21.6% to $179.88 million from $147.94 million in H1 FY16.
During Q2 FY17, the Company repurchased 1.8 million shares of common stock totaling $40 million.
During Q2 FY17, the Company opened 13 new stores including two each in Colorado, Florida, Georgia, and Texas, and five in California.
Outlook
For FY17, Sprouts Farmers Market expects net sales growth to be in the range of 13%-14% and comparable store sales growth to be in the range of 1.5%-2.0%.
The Company estimates diluted EPS to be in the range of $0.88-$0.92 and capital expenditure to be in the band of $155 million-$165 million for fiscal 2017.
Stock Performance
Sprouts Farmers Market's share price finished yesterday's trading session at $23.95, marginally advancing 0.34%. A total volume of 1.43 million shares have exchanged hands. The Company's stock price surged 2.13% in the last three months, 26.05% in the past six months and 4.27% in the previous twelve months. Additionally, the stock rallied 26.59% since the start of the year. Shares of the Company have a PE ratio of 26.58 and currently have a market cap of $3.20 billion.
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SOURCE: Pro-Trader Daily