Sprouts Farmers Market, Inc. (SFM), a supermarket chain, on Tuesday reported flat earnings for the third quarter, on higher SG&A expenses despite a 7.6 percent increase in revenues. Both earnings and revenue surpassed Street view.
Further, the company issued its outlook for the fourth quarter and raised its guidance for fiscal 2023.
Quarterly profit edged down to $65.313 million or $0.64 per share from $65.74 million or $0.61 per share same period last year, on higher selling and general administration expenses.
Excluding items, earnings were $67.093 million or $0.65 per share compared to $65.74 million or $0.61 per share in the previous year.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.62 per share for the year. Analysts' estimates typically exclude special items.
Revenue, however, increased to $1.713 billion from $1.591 billion in the prior year. The street estimate for revenue was $1.68 billion.
Looking forward to the next quarter, the company expects adjusted earnings per share in the range of $0.42 to $0.46.
Looking ahead to the full year, the company said it now expects its adjusted earnings per share to be in the range of $2.77 to $2.81 compared to the previous guidance of $2.68 to $2.76.
The company also raised its revenue growth guidance to the range of 6.5 percent to 7 percent from the earlier expectation of 5 percent to 6 percent.
Additionally, the company announced the appointment of Curtis Valentine as chief financial officer of the company, effective January 1, 2024.
Valentine will replace Lawrence Molloy who will retire at the end of 2023.
Valentine has more than 15 years of financial and retail experience and has served in financial management roles across multiple business units for seven years at PetSmart, Inc.
Currently, Sprouts Farmers shares are trading at $40.75 down 5.99% on Nasdaq
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