Why Sprouts Farmers Market Stock Jumped 13% to a Record High on Tuesday
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Key Takeaways
Shares of Sprouts Farmers Market soared 13% to an all-time high Tuesday after the company reported quarterly results that beat Wall Street expectations and raised its full-year guidance.
The supermarket chain posted same-store sales growth of 6.7% and opened five new stores in the latest quarter.
Sprouts now expects 2024 net sales growth of 9% to 10%, up from a previous projection of 7% to 8%.
Shares of Sprouts Farmers Market (
SFM
) soared to an all-time high Tuesday after the supermarket chain reported quarterly results that beat Wall Street expectations and raise its guidance for the full year.
Sprouts reported late Monday that second-quarter diluted
earnings per share (EPS)
came in at 94 cents, up from 65 cents in the same period a year earlier and topping analysts’ expectations of 78 cents, according to estimates compiled by Visible Alpha.
Net sales
were $1.9 billion, above projections of $1.84 billion.
Same-store sales
growth came in at 6.7% in the second quarter, rising from a 4% increase in the previous quarter. During the second quarter, Sprouts opened five new stores, bringing its total to 419 as of June 30.
The Phoenix-based supermarket chain, which specializes in natural and organic products, now expects 2024 net sales growth of 9% to 10%, up from 7% to 8%, and adjusted
earnings per share (EPS)
of $3.29 to $3.37, up from $3.05 to $3.13.
Sprouts shares jumped 13% to finish Tuesday’s session at $95.88. The stock has nearly doubled since the start of 2024.
