Sprouts Farmers (SFM) Surpasses Q1 Earnings and Revenue Estimates

Core Insights - Sprouts Farmers (SFM) reported quarterly earnings of $1.81 per share, exceeding the Zacks Consensus Estimate of $1.54 per share, and showing a significant increase from $1.12 per share a year ago, resulting in an earnings surprise of 17.53% [1] - The company achieved revenues of $2.24 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.88% and up from $1.88 billion year-over-year [2] - Sprouts Farmers shares have increased approximately 35.6% since the beginning of the year, contrasting with a decline of 5.5% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.14 on revenues of $2.14 billion, and for the current fiscal year, it is $4.68 on revenues of $8.65 billion [7] - The estimate revisions trend for Sprouts Farmers is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Food - Natural Foods Products industry, to which Sprouts Farmers belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Performance Food Group (PFGC), another company in the same industry, is expected to report quarterly earnings of $0.86 per share, reflecting a year-over-year increase of 7.5% [9]