Free Research Report as Sprouts Farmers’ Quarterly Sales Jumped 16% and Adjusted EPS Surged 33%

Stock Monitor: Casey’s General Stores Post Earnings Reporting

LONDON, UK / ACCESSWIRE / April 6, 2018 / Active-Investors.com has just released a free earnings report on Sprouts Farmers Market, Inc. (NASDAQ: SFM) (“SFM”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SFM. The Company reported its fourth quarter fiscal 2017 and the full fiscal year 2017 operating and financial results on February 22, 2018. The natural and organic food retailer topped earnings estimates and provided guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Casey’s General Stores, Inc. (NASDAQ: CASY), which also belongs to the Services sector as the Company Sprouts Farmers Market. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=CASY

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sprouts Farmers Market most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=SFM

Earnings Highlights and Summary

For the thirteen weeks ended December 31, 2017, SFM’s set sales jumped 16% to $1.14 billion compared to $985.7 million in Q4 2017, driven by an increase of 4.6% in comparable store sales and a strong performance in new stores opened. The Company’s revenue numbers were in-line with analysts’ expectations of $1.14 billion.

During Q4 2017, SFM’s gross profit increased 17% to $324 million. This resulted in a gross profit margin of 28.4%, an increase of 20 basis points compared to Q4 2016, primarily driven by cycling a heightened promotional environment in Q4 2016, in addition to leverage from increased comparable store sales. For the reported quarter, the Company’s direct store expenses (DSE) increased 17% to $248 million, or 21.6% of sales, compared to 21.4% of sales in the year-ago same period, primarily driven by higher benefit costs and depreciation.

For Q4 2017, SFM’s selling, general, and administrative expenses (SG&A) increased 8% to $38 million, or 3.3% of sales, compared to 3.6% of sales in Q4 2016, primarily reflecting cycling the costs in FY16, associated with the retirement of the former Executive Chairman of the Company’s Board, and a higher bonus expense.

SFM’s net income was $39.7 million, or $0.29 per diluted share, in Q4 2017 compared to $17.0 million, or $0.12 per diluted share, in Q4 2016. For the reported quarter, the Company recorded an income tax benefit of $18.7 million, related to the Tax Cuts and Jobs Act 2017 (TCJA). Excluding this benefit, the Company’s net income was $21 million, a 24% increase on a y-o-y basis, while diluted earnings per share (EPS) were $0.16, reflecting a growth of 33% compared to Q4 2016. The increase in earnings was driven by higher sales and margins, a lower effective tax rate, and fewer shares outstanding due to SFM’s share repurchase program. The Company’s earnings beat Wall Street’s estimates of $0.15 per share.

SFM’s net sales were $4.66 billion in the full fiscal year 2017, reflecting a 15% increase compared to $4.05 billion in FY16.

For FY17, SFM’s net income totaled $158.4 million, or $1.15 per diluted share, compared to $124.3 million, or $0.83 per diluted share, in FY16. Excluding the tax-related benefit, the Company’s net income increased 12% to $139.8 million on a y-o-y basis, and diluted earnings per share (EPS) grew 22% to $1.01 on a y-o-y basis in FY17.

Growth and Development

During Q4 2017, SFM opened 3 new stores, which are all located in California. During FY17, the Company opened 32 new stores, which resulted in a total of 285 stores in 15 states as of December 31, 2017.

Leverage and Liquidity

For FY17, SFM generated cash from operations of $310 million and invested $186 million in capital expenditure, net of landlord reimbursement, primarily for new stores. In addition, the Company repurchased 9.7 million shares of its common stock for a total investment of $203 million in FY17.

SFM ended the year with a balance of $348 million on its revolving credit facility; $28 million of letters of credit outstanding under the facility; $19 million in cash and cash equivalents; and $127 million available under the Company’s current share repurchase authorization. SFM’s Board of Directors has authorized a repurchase, on a discretionary basis, of up to an additional $350 million of its outstanding common stock through December 2019, for an aggregate authorization of $447 million.

2018 Outlook

For the full fiscal year 2018, SFM is forecasting revenue growth to be in the range of 11.5% to 12.5%, and earnings per diluted share to be in the band of $1.22 to $1.28. The Company is estimating to open 30 new stores in FY18.

Stock Performance Snapshot

April 05, 2018 – At Thursday’s closing bell, Sprouts Farmers Market’s stock slightly declined 0.21%, ending the trading session at $23.73.

Volume traded for the day: 846.17 thousand shares.

Stock performance in the previous six-month period – up 28.06%; and past twelve-month period – up 2.91%

After yesterday’s close, Sprouts Farmers Market’s market cap was at $3.16 billion.

Price to Earnings (P/E) ratio was at 23.50.

The stock is part of the Services sector, categorized under the Grocery Stores industry. This sector was up 1.0% at the end of the session.

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