Sprouts Farmers Market (SFM) has maintained its recent forward sales momentum and appears ready to exceed Wall Street expectations when the grocery chain reports financial results for its Q1 ended March 31, analysts at RBC Capital Markets said Thursday, citing third-party data and recent interactions with Sprouts management.
Second-measure sales data compiled by Bloomberg points to continued acceleration at Sprouts stores during Q1 compared with the prior quarter, the RBC analysts said, noting the Bloomberg data previously has shown a 93% correlation to the company's quarterly sales.
The RBC analysts now anticipate upside to the 11.5% estimate for sales at Sprouts stores open more than a year compared with the first three months of 2024, topping the 11% consensus call, and upside to estimate for per-share earnings of $1.55, also beating the Wall Street consensus by a penny.
While the RBC analysts said it's possible Sprout could raise its 2025 guidance, they reiterated their overall stock rating for the company at sector perform and $160 per share price target, explaining it appears investors already are pricing in much of the expected upside for the company.
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