Whole Foods Continues To Shine, Despite Revenue Mix (WFMI)

Whole Foods Market, Inc. (NASDAQ: WFMI) had traded as though investors were expecting a breather going into earnings.  Those earnings are out and it turns out that the company continues to amaze.  Earnings came in at $0.51 EPS on revenue of $2.35 billion.  Thomson Reuters had estimates of $0.46 EPS and $2.37 billion in revenues.  This quarter’s earnings report translates to a net income of $89.9 million and its same-store sales were up 7.8% in the quarter.

For 2011, Whole Foods sees earnings of $1.87 to $1.90 EPS and Thomson Reuters has estimates of $1.80 EPS.  It is also backing same-store sales growth of 7.9% to 8.9% and total sales growth 11.7% to 12.6% for the year, both of which are higher than prior guidance.  The company maintained its cap-ex expectations at $350 million to $400 million.

During the quarter, Whole Foods generated $149.8 million in cash flow from operations and its total cash and cash equivalents were $721.2 million.  Its total debt was only $208.2 million.

The company called this the strongest results it has reported in the past five years and hinted that it is considering other uses for our growing cash balance, including accelerating growth, raising the dividend and repurchasing stock.

Whole Foods stock closed down $0.03 at $59.74 on Wednesday and the 52-week range is $33.96 to $66.87.  The after-hours reaction now has shares up almost 5% at $62.35.

JON C. OGG