Whole Foods Market (WFM – Get Report) stock is advancing by 5.26% to $30.01 on heavy trading volume on Thursday afternoon, after the company delivered better-than-expected earnings for the fiscal 2016 second quarter. Nevertheless, Whole Foods kept its earnings guidance for $1.53 per share, although it changed “at least” to “up to” in its explanation, reversing the potential for deviations from expectations.
Advertisement
Even with the new 365 chain preparing to launch this month, analysts are expressing concern about continued same-store sales declines at Whole Foods Market Inc.
The Austin, Texas company said sales fell 3 percent at established stores for the quarter ended April 10.
“We are very excited to be just three weeks away from opening our first 365 by Whole Foods Market store on May 25 in Silver Lake, California”.
For quite some time now, Whole Foods has been working on lowering prices, upgrading technology and containing costs.
BMO Capital Markets rates Whole Foods underperform with a $23 price target. The business had revenue of $3.70 billion for the quarter, compared to analyst estimates of $3.75 billion.
In other Whole Foods Market news, Director Stephanie Kugelman sold 6,400 shares of the company’s stock in a transaction on Friday, March 4th. Equities analysts anticipate that Whole Foods Market, Inc. will post $1.55 EPS for the current fiscal year.
“We produced record sales and operating cash flow, and returned $144 million of capital to our shareholders”, said co-founder and co-CEO John Mackey, in a news release.
In 2017, as many as 10 of the 365 stores could open, including a Cedar Park location near New Hope Drive and the 183-A Tollway. It was the third consecutive month of same-store sales declines.
The 365 Markets are smaller than typical Whole Foods stores, created to be quick and convenient. The new 365 leases average 30,000 square feet and are located in Long Beach, Calif.; North Hollywood, Calif.; and Decatur, Ga.
It also lowered its full-year sales forecast, saying it now expects growth of up to 3%, down from a previous forecast of growth of up to 5%.
Investors in Whole Foods seemed to take the news in stride, celebrating the earnings beat and sending the stock up nearly 2% in after-hours trading following the announcement.
22 Number of brokers believe that the price target for the company may go as high as $38.00 whereas, the low target suggested by the analysts is $20.00.
Advertisement
Whole Foods continues to face competition from its food retailing rivals, such as Trader Joe’s, if it’s latest earnings are any indication. Whole Foods Market Inc has been the topic of 32 analyst reports since July 28, 2015 according to StockzIntelligence Inc.
