Whole Foods Market
The 10-second takeaway
For the quarter ended April 14 (Q2), Whole Foods Market met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share grew significantly.
Margins grew across the board.
Whole Foods Market recorded revenue of $3.03 billion. The 22 analysts polled by S&P Capital IQ predicted net sales of $3.03 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $2.67 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.76. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.73 per share. GAAP EPS of $0.76 for Q2 were 19% higher than the prior-year quarter's $0.64 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.4%, 10 basis points better than the prior-year quarter. Operating margin was 7.6%, 40 basis points better than the prior-year quarter. Net margin was 4.7%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.10 billion. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $13.06 billion. The average EPS estimate is $2.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,671 members out of 5,238 rating the stock outperform, and 567 members rating it underperform. Among 1,546 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,452 give Whole Foods Market a green thumbs-up, and 94 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Whole Foods Market is outperform, with an average price target of $102.18.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Whole Foods Market. The Motley Fool owns shares of Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.