What Happened: Shares of grocery chain Sprouts Farmers Market (NASDAQ:) jumped 7.8% in morning trading after the company reported fourth-quarter results that beat analysts’ earnings per share estimates, even as revenue fell in line expectations. The company’s higher profitability was driven by higher-than-expected same-store sales growth (less capital-intensive ancillary income) and lower-than-expected new store openings (capital-intensive ancillary income). What’s more, full-year same-store sales and earnings growth forecasts beat Wall Street forecasts. Overall, it was a good quarter, which should please shareholders.
Is it time to buy sprouts? Find out by reading the original article on StockStory..
What the market is telling us: Sprouts stock is less volatile than the market average, with only 3 moves above 5% over the past year. In this context, today’s move indicates that the market considers this news significant, although it may not fundamentally change its perception of the business.
Sprouts sales growth is up 18.4% year-to-date. Investors who bought $1,000 worth of Sprouts stock 5 years ago would now be looking at an investment worth $2,450.