Whole Foods Market
The 10-second takeaway
For the quarter ended July 7 (Q3), Whole Foods Market met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Margins grew across the board.
Whole Foods Market chalked up revenue of $3.06 billion. The 20 analysts polled by S&P Capital IQ predicted revenue of $3.09 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.73 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.38. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. GAAP EPS of $0.38 for Q3 were 19% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 36.6%, 60 basis points better than the prior-year quarter. Operating margin was 7.5%, 50 basis points better than the prior-year quarter. Net margin was 4.6%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.06 billion. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $13.02 billion. The average EPS estimate is $1.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,714 members out of 5,278 rating the stock outperform, and 564 members rating it underperform. Among 1,650 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,565 give Whole Foods Market a green thumbs-up, and 85 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 $56.64.
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