Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Whole Foods Shares Rally, Despite Weak Forecast And Comps

Wednesday, November 2, 2016 14:09
% of readers think this story is Fact. Add your two cents.

(Before It's News)

whole-foods-wfm-logoNatural grocery store operator Whole Foods Market, Inc. (NASDAQ:WFM) late today posted better than expected Q4 earnings, but its comparable sales growth and 2017 outlook fell well short of expectations.

Surprisingly, shares were rising up to 4% in late trading anyway.

The Austin, Texas-based company reported fiscal Q4 EPS of $0.28, which was four cents better than Wall Street’s $0.24 estimate. Revenues rose 1.7% from last year to $3.5 billion, slightly missing forecasts for $3.51 billion.

On a sour note, comparable store sales fell 2.6% from the year-ago period. Comparable sales, also known as same-store sales or simply “comps,” are perhaps the most important measure of a brick-and-mortar retailer’s health, since they gauge the year-over-year performance of stores open at least 12 months.

WFM also noted it saw Q3 EBITDA of $276 million, or 7.9% of sales, along with a 13% return on invested capital.

Looking ahead, Whole Foods issued weaker-than-expected guidance. For the full fiscal year 2017, it forecast EPS of $1.42 or more, while analysts are looking for $1.47 per share for the year. Full-year revenues are seen growing 2.5-4.5% to about $16.12 to 16.43 billion, which would also miss Wall Street’s $16.44 billion estimate. It also issued 2017 comparable store sales growth of -2% to 0%.

Finally, Whole Foods said it will abandon its co-CEO structure, and go with a sole Chief Executive Officer, with co-Founder John Mackey to serve in that capacity very soon.

The company commented via press release:

“In a year that presented many headwinds for food retailers, we made measurable progress on positioning our company for continued success while producing industry-leading sales per gross square foot and healthy returns on invested capital.”

Whole Foods shares in after-hours trading Wednesday. Prior to today’s report, WFM had fallen 14.5% year-to-date, versus a 3.1% rise in the benchmark S&P 500 during the same period.

WFM-2016-11-02

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.