What happened

Shares of Sprouts Farmers Market Inc. (NASDAQ:SFM) jumped 23.2% in August, according to data from S&P Global Market Intelligence, after the natural and organic grocery chain released strong second-quarter results and modestly increased its full-year guidance.

To be sure, Sprouts stock climbed more than 12% on Aug. 2, 2018, alone -- the first trading day after its report hit the wires -- then continued drifting higher from there.

Neatly arranged produce at a Sprouts Farmers Market store


So what

Sprouts' quarterly revenue climbed 12% year over year to $1.32 billion, including a modest 2% increase in comparable-store sales.That translated to a 2% increase in net income to $42 million, and -- thanks to share repurchases over the past year -- 10% earnings growth on a per-share basis to $0.32. Both the top and bottom lines were roughly in line with Wall Street's expectations. 

According to CEO Amin Maredia, the company's double-digit growth "reflects the strength of Sprouts' differentiated business model and our solid execution across new and existing markets."

Now what

Looking ahead to the rest of the year, Sprouts called for 2018 earnings per share in the range of $1.24 to $1.28, marking a $0.02-per-share increase from the lower end of its previous range. Sprouts also reaffirmed its full-year 2018 outlook for net sales to jump 10.5% to 11.5%, assuming comparable-store sales growth of 1.5% to 2.5%.

Of course, this report wasn't exactly the jaw-dropping variety that typically results in big post-earnings gains. But shares had also fallen around 25% from their 52-week high set this past February, leaving the stock ripe for a rebound on the first sign of good news. As a result, it was no surprise to see Sprouts bouncing back last month last month, and it will be equally unsurprising if the stock sustains its momentum in the coming months.

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