On July 30, Sprouts Farmers rose 5.37% in pre-market trading, trading at $84.92/share, with turnover of $32,600. The rally was driven by the company's better-than-expected Q2 earnings report released after the prior session's close.
Sprouts Farmers posted Q2 adjusted EPS of $1.37, exceeding both the analyst consensus estimate of $1.34 and the company's own prior guidance range of $1.32–$1.36. Revenue came in at $2.326 billion, also surpassing the $2.320 billion estimate. The company further raised the low end of its full-year EPS guidance to $5.32–$5.40, up from the initial range of $5.28–$5.44 issued in February.
The results effectively dispelled concerns that had weighed on sentiment ahead of the report. Oppenheimer had previously warned that soft grocery demand and consumer fears related to a Cyclospora outbreak could pressure the produce category. During the earnings call, management characterized the outbreak's impact as mild, with most effects expected to materialize in Q3. The combination of a top- and bottom-line beat alongside reassuring commentary propelled shares sharply higher in extended trading.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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