Sprouts Farmers (SFM) Q2 Earnings and Revenues Surpass Estimates

Core Insights - Sprouts Farmers (SFM) reported quarterly earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, and showing an increase from $0.94 per share a year ago, resulting in an earnings surprise of +9.76% [1] - The company achieved revenues of $2.22 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.47%, and up from $1.89 billion year-over-year [2] - Sprouts Farmers shares have increased approximately 23.5% year-to-date, outperforming the S&P 500's gain of 8.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $2.18 billion, and for the current fiscal year, it is $5.08 on revenues of $8.77 billion [7] - The estimate revisions trend for Sprouts Farmers was favorable prior to the earnings release, 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 top 13% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]