The stock of Sprouts Farmers Market (SFM) is down 25% on Oct. 30 after the grocery retailer reported third-quarter revenue that missed Wall Street’s target.
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SFM stock is crashing after the company, which specializes in natural and organic food, announced revenue of $2.20 billion for the third quarter, missing the consensus estimate that called for $2.23 billion. Despite the miss, sales were up 13% from a year earlier. Same-store sales grew 6% year-over-year.
Sprouts Farmers Market also reported earnings per share (EPS) of $1.22, which beat Wall Street’s forecast of $1.17. Management said they opened a total of nine new stores during the quarter, bringing the company’s total to 464 locations across 24 U.S. states.
Guidance
In the company’s earnings release, CEO Jack Sinclair said: “Our passionate team members, financial foundation, and disciplined execution will position us to deliver sustainable earnings growth, as we navigate strong year-over-year comparisons.”
For the current fourth quarter, Sprouts guided for same-store sales growth of 0% to 2% and earnings per share of $0.86 to $0.90. The company maintained its full-year 2025 outlook, projecting approximately 14% sales growth, 7% same-store sales growth, and earnings of $5.24 to $5.28 a share.
Is SFM Stock a Buy?
Sprouts Farmers Market has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on eight Buy and six Hold recommendations issued in the last three months. The average SFM price target of $132 implies 69.11% upside from current levels. These ratings could change after the company’s financial results.
