Sprouts (SFM) Shares Skyrocket, What You Need To Know
What Happened:
Shares of grocery store chain Sprouts Farmers Market (NASDAQ:)
jumped 7.8% in the morning session after the company reported fourth-quarter results that exceeded analysts’ EPS forecasts despite posting revenue in line with expectations. The company’s higher profitability was driven by its better-than-expected same-store sales growth (less capital-intensive incremental revenue) and lower-than-expected new store openings (capital-intensive incremental revenue). Furthermore, its same-store sales growth and earnings forecast for the full year exceeded Wall Street’s forecasts. Overall, this was a good quarter that should please shareholders.
Is now the time to buy Sprouts? Find out by reading the original article on StockStory.
What is the market telling us:
Sprouts’s shares are not very volatile than the market average and over the last year have had only 3 moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Sprouts is up 18.4% since the beginning of the year. Investors who bought $1,000 worth of Sprouts’s shares 5 years ago would now be looking at an investment worth $2,450.