Analysts Have Made A Financial Statement On Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) Full-Year Report

It's been a pretty great week for Sprouts Farmers Market, Inc. (NASDAQ:SFM) shareholders, with its shares surging 13% to US$59.63 in the week since its latest full-year results. Results were roughly in line with estimates, with revenues of US$6.8b and statutory earnings per share of US$2.50. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Sprouts Farmers Market

Taking into account the latest results, the most recent consensus for Sprouts Farmers Market from 15 analysts is for revenues of US$7.29b in 2024. If met, it would imply a satisfactory 6.6% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 13% to US$2.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.29b and earnings per share (EPS) of US$2.80 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$42.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sprouts Farmers Market, with the most bullish analyst valuing it at US$49.00 and the most bearish at US$30.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sprouts Farmers Market shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Sprouts Farmers Market's growth to accelerate, with the forecast 6.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sprouts Farmers Market to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sprouts Farmers Market's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Sprouts Farmers Market going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Sprouts Farmers Market Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.