A solid earnings beat for both the fourth quarter and full fiscal year, as well as positive comments from analysts afterward, have helped boost Whole Foods Market Inc. (NASDAQ: WFM) shares to a level not seen since the precarious fall back in May following an earnings miss and cut guidance.
Here is a quick look at how analysts responded to the most recent earnings report:
- The stock was maintained as Hold at Jefferies, but the price target was raised from $41 to $43.
- Argus maintained its Buy rating and lifted its one-year price objective to $50 from $48.
- Canaccord Genuity maintained its Buy rating and a $49 price target.
- Wedbush reiterated a Neutral rating and a $40 price target on the shares, citing store remodeling as a potential boost to same-store sales.
- Morgan Stanley reiterated an Overweight rating and a $50 price target, also citing the company’s efforts at a turnaround.
It may be fair to say the analysts seem cautiously optimistic.
For the quarter, the high-end grocery store chain posted adjusted diluted earnings per share (EPS) of $0.35 on revenues of $3.30 billion. In the same period a year ago, the company reported EPS of $0.32 on revenues of $2.98 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.32 and $3.26 billion in revenues.
For the full year, Whole Foods posted EPS of $1.56 on revenues of $14.20 billion, compared with fiscal 2013 EPS of $1.47 on revenues of $12.92 billion. The consensus estimates called for EPS of $1.54 on revenues of $14.19 billion.
Same-store sales rose 3.1% in the quarter, compared with the same period a year ago. The two-year comparable store growth came in at 9%.
Whole Foods has had to lower some prices to better compete with Kroger Co. (NYSE: KR) and Wal-Mart Stores Inc. (NYSE: WMT), which both now tout their natural and organic foods. By doing so, however, the company forfeits its place at the high-end of the market. Its recent Responsibly Grown fresh-produce ranking system is likely aimed at returning to the store some pricing power for produce grown under more demanding conditions.
Whole Foods shares traded up more than 6% after-hours following the report, and they were up about 10.7% to $44.28 in early afternoon trading Thursday. Shares are still down about 23% year-to-date and have traded in a 52-week range of $36.08 to $64.72.
ALSO READ: More Evidence of the Amazon Bubble Bursting
Travel Cards Are Getting Too Good To Ignore
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.