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Can Whole Foods Market Beat These Numbers?

By Seth Jayson – Updated Apr 10, 2017 at 11:36AM

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Checking expectations

Whole Foods Market (Nasdaq: WFM) is expected to report Q3 earnings on July 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Whole Foods Market's revenues will grow 13.4% and EPS will increase 15.6%.

The average estimate for revenue is $3.09 billion. On the bottom line, the average EPS estimate is $0.37.

Revenue details
Last quarter, Whole Foods Market booked revenue of $3.03 billion. 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 details
Last quarter, EPS came in at $0.38. GAAP EPS of $0.38 for Q2 were 19% higher than the prior-year quarter's $0.32 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $13.03 billion. The average EPS estimate is $1.45.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,708 members out of 5,271 rating the stock outperform, and 563 members rating it underperform. Among 1,659 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,573 give Whole Foods Market a green thumbs-up, and 86 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 $51.09.

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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.

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Whole Foods Market, Inc. Stock Quote
Whole Foods Market, Inc.
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